Twenty elderly residents, between the ages of 61 and 98, who live in supported housing in Barrowby have been told they will have to move.
And 12 staff who work at the Greenacre site, Rectory Lane, have been told they face redundancy.
The owner of Greenacre, Raglan Housing Association Ltd, says the housing “falls short of the level of standards and service we aim for”.
It says it cannot change or adapt the housing because there is a large amount of asbestos in and it would prove too costly to adapt.
Raglan is selling the site for redevelopment and predicts that residents will have moved out within 12 to 15 months.
Residents, their families and staff were told of the decision on Wednesday. One man who was at the meeting said: “The documentation was an absolute joke because the decision to close it was apparently made on Thursday, January 10. There was no indication of what will happen to the residents, only that it was being closed for commercial reasons because it’s unfit for purpose. If that’s the case, why are people in there now?”
Greenacre site is made up of a number of bedsits with shared bathroom and kitchen facilities.
Raglan said: “Residents will be transferred to other housing, appropriate to their needs.
“We fully appreciate the impacts of this decision and are working hard to minimise any disruption or uncertainty. Consultation is underway and we have appointed “Total Voice” to act as an ‘independent advocate’.
“We will seek to re-deploy staff elsewhere in the organisation but forecast there will be a number of redundancies. Some of these may be voluntary and some compulsory.
“A process of full consultation is already underway and we will support staff through the transition period.”