The Department of Health and Social Care says eight homes for the elderly won't be allocated and the waiting list will be closed.
In a question for written answer to Social Care Minister Claire Christian, Onchan MHK Rob Callister wanted to know what is happening to the public sector bungalows in Meadow View, Onchan.
Ballacurn House Trust run by the government own the homes, but the properties aren't being allocated as work needs to be done to get them to a 'good standard'.
Ms Christian says although the government does recognise the need for more affordable homes, the houses require refurbishment and the department is looking for a more suitable housing provider to manage the properties,
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