PLANS to knock down, lease or sell rundown accommodation for the homeless look set to get the go-ahead.

Colchester Council’s cabinet will vote on plans to dispose of 102 rooms and chalets on Wednesday.

Selling off the properties would bring in about £1.5million.

But some properties will be leased to the housing association Family Mosaic, which will take charge of new purpose-built accommodation on the site of the Ascott House homeless unit, in Stanway. The stock transferred to Family Mosaic will be reserved for people in dire need.

The overall number of places available will be reduced by 40.

Housing chiefs have recently increased their use of bed and breakfast accommodation to put up homeless families, suggesting more temporary accommodation may be needed rather than less.

But a report to the cabinet explains the emergency units are under-used as they are mostly hostel-style rooms and are not suitable for mums with children.

Bosses say getting rid of emergency accommodation would be welcomed by neighbouring residents because the units tend to attract people who have drink or drug problems.

They say knocking down and rebuilding former hotel, Ascott House, and the chalets for families behind it, Ascott Gardens, will be a risk because the council will have to manage without the rooms there until building work is completed in 2011.

Peter McDonagh, housing officer, said: “Currently, there is capacity to meet the loss of use at Ascott House and Gardens within our existing provision of temporary accommodation.

“The idea is to replace it with a balance of accommodation for families and single people, all on one land, with support staff on site to help people with problems.”

Family Mosaic, which runs Bernard Brett House, an accommodation block for homeless young people in Southway, would pay £1million towards replacing Ascott House and Gardens.

The Government’s Homes and Communities Agency would pay £1.5million and the council would have to pay £600,000.

The cost to the authority would be offset by the £1.5million it hopes to make by selling homeless accommodation at 93/95 Military Road, 95 Winnock Road and 60 Creffield Road.

It might have to weigh in with more cash for improvements to Gothic House, Friars Court and John Bird Court, which Family Mosaic would be taking over.