A council has been fined after it refused to house a penniless family facing homelessness until they paid their rent in advance.
The Local Government Ombudsman found Arun District Council guilty of maladministration causing injustice.
It was ordered to pay £300 compensation to the family, who have not been publicly identified.
Four housing officers, including the council's head of housing policy, have also been told not to demand money from homeless families before handing over the keys to council properties.
Ombudsman Jeremy White said the family suffered unnecessary stress and anxiety.
Since 1992 the mother, father and four children have spent the summer in a mobile home on Quarry Bank Caravan Park, near Bognor.
The park closes on October 31 and each year they have either found a rented house or applied to the council for winter accommodation.
On October 3 last year they applied to the council as a homeless family and on October 27 were offered a two-bedroom flat in Weatherhead Close, three miles from the park.
When the mother arrived at Bognor Town Hall she was told she could not have the keys until she paid two weeks' rent in advance, a total of £112.06. She was unable to afford the money and broke down.
She called the ombudsman's office and the family was eventually handed the keys to a flat on the morning they left their caravan.
They had to agree to pay one week's rent on the first Friday.
In his report, Mr White said: "I do not dispute that they had outstanding rent arrears in respect of previous council tenancies. I also accept there was never an intention not to house them by October 31.
"But as a result of the council's action they suffered a great deal of stress and uncertainty which could have been avoided."
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