Gina Adair has been living near Bolton
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The wife of the convicted loyalist paramilitary leader, Johnny Adair, has lost her fight to be housed by Bolton Council.
The local authority had refused to provide accommodation for Gina Adair and her family after they fled to the area from Northern Ireland.
They are currently living in a private house in Horwich, Greater Manchester, which was attacked by gunmen in April.
Mrs Adair, with the support of the housing charity Shelter, had taken the council to court last month claiming it had not acted correctly.
But Manchester County Court ruled Bolton Council was correct in its decision.
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We believe that this is a good and fair decision
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A Bolton Council spokesman said: "In dealing with this application, the council has carefully considered the circumstances of the applicants Mrs Adair and her family and has tried to deal with them fairly as the law requires.
"But the council is also concerned about the implications for the well being of the wider community in Bolton - from both points of view.
"We believe that this is a good and fair decision."
Some local residents have told the BBC in the past that they are terrified and intimidated by the Adairs' presence.
They have lobbied local councillors to have the family moved elsewhere.
Mrs Adair has been living in the Bolton area since her family and other supporters were forced to leave Northern Ireland following an internal loyalist feud.