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Homeless people in Sydney 'tent city' turn down offers of homes

Homeless people living in Sydney's 'tent city' have reportedly turned down offers of permanent housing.

Dozens of tents have been erected in the CBD forecourt since December with the number continuing to grow despite attempts by authorities to move people on.

As the NSW state government and Sydney City Council continue their war of words over who is to blame, those living amongst the homeless pop-up are refusing offers of warm homes.

One couple was reportedly offered permanent housing in a unit on Pittwater Rd for the heavily discounted rate of $120 per week, far less than the $530 it usually goes for.

The deal, which included a bed, television and other furniture was knocked back on July 17.

Dozens of tents have been erected in the CBD forecourt since December with the number continuing to grow despite attempts by authorities to move people on. Source: AAP

Those residing in the 'tent city' have snubbed housing offers from the state government. Source: 7 News

Further homeless squatters also snubbed homes in Kingsford and Stanmore, opting to stay in their makeshift community that is causing all sorts of headaches for police and politicians alike.

Meanwhile NSW's police commissioner has pointed the finger at the City of Sydney, saying it should use its powers to find a solution to the tent city protest in Martin Place.

Commissioner Mick Fuller said the problem would persist as long as the council provided facilities like mobile showers.

"The problem in this matter is that whilst ever local government puts in place activities that will make it of interest for homeless people, they will continue to set up camp," he told reporters on Thursday.

Mr Fuller said police were prepared to help council remove the tents, barbecues and gas bottles from the camp - noting the approach had been successful in the past.

But a spokesman for Lord Mayor Clover Moore hit back on Thursday, telling AAP mobile showers were funded by the state government.

Some homeless squatters snubbed homes in Kingsford and Stanmore, opting to stay in their makeshift community that is causing all sorts of headaches for Sydney politicians. Source: AAP

The City of Sydney was focused on "practical solutions for people sleeping rough and homeless", he said is a statement.

The spokesman reiterated calls to find a long-term solution and urged the state government to accept a proposal for a development comprising 150 new affordable and social housing units.

Mr Fuller will meet with Social Housing Minister Pru Goward to discuss the encampment on Friday morning.

"And we will drag, if we have to, kicking and screaming, someone from local government to get a resolution," the commissioner told 2GB on Thursday.

Newsbreak - August 3