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Blocks of flats previously used as supported accommodation for young people are to be filled with homeless families - not asylum-seeking teenagers.
There had been speculation that Bridge House in Sheerness could be an option for unaccompanied children who arrive in Kent on small boats.
That was heightened when a plan to put Ocean Heights care home in Minster to such a use was scrapped last week when the owners withdrew from a deal to sell it.
However, Southern Housing, which owns Bridge House, in Bridge Road, today confirmed its plans for the facility.
A spokesman said: "We can confirm Bridge House will provide temporary accommodation for homeless families.
"We’re working in partnership with Swale council and all of our referrals will come from this local authority.
"Bridge House previously offered housing support services to young client groups. Sanctuary provided these services on behalf of Southern Housing.
“I can add we’re not looking at this building for accommodating unaccompanied asylum-seeking children…”
"Funding for housing support services at Bridge House was withdrawn by Kent County Council (KCC) Commissioners from March 31.
"We continue to work closely with Sanctuary in supporting existing, remaining residents to find alternative homes."
The young people who had been living there were served with eviction notices following the KCC cuts.
The flats were home to up to 20 teenagers either in or leaving the care system.
Its mission statement said it provided a stepping stone towards independence for over 18s with learning and mental health difficulties, with drug and alcohol problems or who have had involvement in crime or gangs, among others.
But at the beginning of the year, residents were handed section 21 eviction notices, giving them until the end of March to find somewhere else to live.
Tenants received a letter from supported living company Sanctuary.
It read: “Kent County Council will no longer be funding accommodation-based services from April to some young people.
"As previously discussed, this affects your tenancy with us as it is dependent on the delivery of support.
“Unfortunately, there is not the option to remain at the property after March 31.
“From April we will no longer cover district councils’ statutory responsibility to house care leavers over 19…”
“It is in your best interests to engage with us around your realistic move-on options.
“This may include having to look in the private sector for affordable properties.”
It comes as KCC opted to stop providing housing support for adult care leavers aged 19 to 21 – something it says it previously did despite having no legal duty.
The move will save around £700,000 a year.
However, it is understood of the seven young people still housed at Bridge Road in February this year, only two were aged over 19 and so unaffected by the funding issue.
Sanctuary was approached about the closure did not wish to comment.
One parent, who wishes to remain anonymous, said their child was among those issued with a section 21 notice.
While they had since found a new place to live, they do not receive the same support they had previously, however.
A KCC spokesperson added: “We provide all our care leavers with supported accommodation up to 19 and, should they want it, ongoing support through the Care Leavers Service up to 25.
“From April we will no longer cover district councils’ statutory responsibility to house care leavers over 19.
“We worked with young people from these schemes to try to find alternative accommodation…”
“Research shows our approach was not helping our young adults achieve independence and the move is expected to save £700,000 on already stretched county council budgets.
“We are working closely with our district colleagues to support the move to the new arrangements."
Commenting on the speculation regarding young asylum seekers, the spokesman said: “I can add we’re not looking at this building for accommodating unaccompanied asylum-seeking children.”
Swale council worked with KCC to find alternative accommodation, and says it is yet to find permanent accommodation for two tenants.
A spokesman said: “We worked with young people from these schemes to try to find alternative accommodation.
"If this isn’t successful and they have a possession order, we will support them through our homelessness process and potentially temporary accommodation if they are eligible.”