A HOUSING group has applied for permission to sell its share of a building used for single homeless people.

In 1987, Three Rivers Housing Association used a Local Authority Housing Association Grant (LAHAG) to convert a disused office in Church Street, Hartlepool into bedsits.

The building was originally converted into 15 bedsits and a resident warden flat, but the housing association were unable to recruit a warden and the building became a 16-bed flat.

Many young people who took up tenancies at the flats had behavioural problems and the housing association's maintenance costs escalated in the early years.

Following a number of problems, the building has stood empty for about five years, and the housing association now wants to sell the building.

The cost of the original project was £355,150, of which £315,500 was raised from the grant and the balance was funded by a loan from Hartlepool Borough Council.

Currently, £25,493 of the loan is owed plus £23,145 in interest

A report to the council's neighbourhood services board, said: "The property has been empty for five years and has been a source of some nuisance.

"It is now unsuitable for use as social housing and therefore bringing it into alternative use would seem to be a reasonable way forward.

"It would be essential to recover the outstanding debt from the Three Rivers Housing Association when they sell their interest in the property."

Northern Counties Leisure has received planning permission to convert the building into a pub.