The homes were advertised on the council intranet in July 2007
A local authority is to stop allowing its staff to live in council homes when they relocate to the area.
Norwich City Council's decision follows an inquiry into how a senior housing officer and other staff were able to live in a sheltered bungalow complex.
The employees had been at Greyhound Opening which is to be redeveloped.
The council said none of its staff, except those on the formal waiting list, would be allowed to move in to property owned by the authority.
The housing officer involved in the case, Kristine Reeves, remains suspended on full pay.
Senior council officials said they had no idea staff were being allowed homes in the complex on a first come, first served basis.
Staff living at the homes in Greyhound Opening have been given notice to quit with the buildings set for demolition at the end of the month.