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The warning from Swansea Council comes after 27 people were found guilty of supplying Class A drugs.
All those convicted, who were jailed following Operation Avignon, may also be evicted from their homes.
But Swansea-based charity Cyrenians say the plans would place homelessness charities "under increased pressure".
Swansea Council issued its eviction warning to council tenants, which includes those who allow people living with them or visiting their home to use the property for drug dealing. Read More: