Nottingham City Homes has apologised to a couple from Bulwell who were offered a council bungalow but later told it was not available.
George and Ivey Hibbett want to move from their three-bedroom house to a bungalow on medical grounds.
Mrs Hibbett, 64, suffers from arthritis and struggles to climb stairs.
An NCH official said the property was allocated to someone who had a greater need. The Hibbett case has been referred to an occupational therapist.
The Hibbetts said they first asked to move to a bungalow back in 1986.
'So frustrating'
Mrs Hibbett said her knees are very painful so she needs to be helped upstairs and often has to climb down on her bottom.
"They kept saying they couldn't find our reference number and finally a housing official came out to see me and looked at the paperwork.
"I have kept the paperwork all this time and nothing was done about it. It is so frustrating."
Nottingham City Homes finally offered them a bungalow a month ago but had to change that offer.
It said "demand for council homes is outstripping supply".
The Hibbetts' case is being considered as "a matter of urgency" on medical grounds.
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