The development is located in Albion Street, Southwick, and includes 49 new council homes.
It is part of Adur District Council’s ongoing efforts to reduce its housing waiting list.
The new homes require major work before residents can move in (Image: Adur & Worthing Councils)
Councillor Jeremy Gardner, leader of Adur District Council, said: “I am appalled that tenants are not able to move into these homes because of shoddy construction work and poor building design.
“I apologise to those who have been waiting patiently to move into the new flats.
“They will be even more frustrated than I am that they are still not ready.
“This simply should not have happened and I have asked for a full report so that I and the public can get the facts on this.
“I want those problems rectified as soon as possible so Adur families in need of somewhere to live can move into these new homes.”
Dozens of the flats are at risk of serious ongoing damp issues if they are not resolved (Image: Eddie Mitchell)
The project first ran into trouble in September 2023 when its original contractor, Westridge Construction, went into administration.
Cheesmur Building Contractors was brought in to complete the job and has spent the last two years correcting poor-quality work left behind by Westridge.
However, as repairs progressed, further serious issues were uncovered.
Faulty weatherproofing and design flaws have left dozens of flats at risk of damp and water damage.
Problems identified so far include rainwater being funnelled into homes, defective damp-proof courses, and the use of materials that absorb rather than repel moisture.
Specialist engineers are currently investigating the full extent of the problems and exploring possible solutions.
The original contractor, Westridge Construction, went into administration (Image: Eddie Mitchell)
Early estimates suggest remedial work could cost more than £3 million. A full report into the issues will be discussed by councillors later this year.
Councillor Gardner said: “Later in the year we will consider a report on how this shocking state of affairs came about.
“We must get to the bottom of how this has taken place.
“It looks like that will include reviewing poor practice or errors from several years ago.”
The council is keeping all affected residents informed of their options.
A formal update and potential plans will be presented to the council’s joint strategic committee on Tuesday, July 14.
The scheme includes 25 one-bedroom and 24 two-bedroom flats, all built on brownfield land overlooking Shoreham Harbour.
The homes are intended for a mix of social and affordable rent.
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