Daventry District Council should apologise and pay £5,000 to a local couple an investigation by the Local Government Ombudsman has recommended.
The investigation found a disabled man had been left to live in unsuitable accommodation for three years because DDC wanted to save money.
The complainant needed alterations to create a downstairs bedroom in his property as he suffers with a degenerative medical condition. He applied for help from DDC to adapt his property in Novemeber 2010.
The application met all the criteria for funding but the council identified an alternative scheme through the county council.
“This could fund the work at no cost to the council. However, this application was delayed and was ultimately unsuccessful.
Following the investigation DDC has now agreed to start work on the alternations in August.
Community manager at DDC Maria Taylor said: “We will respond positively to the findings.
“We deal with many applications during a year and are able to satisfy the requirements of those in need generally. The upholding of complaints about the council by the Ombudsman is very rare and there are unique circumstances in this case.”