The housing provider that was embroiled in the coloured wristband controversy last January has been issued with a legal notice to reduce overcrowding at its premises, the Guardian reports.
Lynx House, which is run by the private firm Clearsprings Ready Homes and contracted by the Home Office, has been accused of expecting up to 11 people to sleep in one room.
Before the Guardian exposed the overcrowding, asylum seekers alleged that there were 137 people sleeping at Lynx House.
Cardiff Council, which carried out a surprise inspection of the property, says only 36 people should be sleeping there.
The company has 21 days if it wants to appeal to the Residential Property Tribunal against the overcrowding notice.
This is the second time this year Clearsprings Ready Homes has been in the headlines.
Last January, they received a barrage of criticism after it was revealed they were making asylum seekers living in their homes wear coloured wristbands.
These bands, which the private firm have since abandoned, made them easily identifiable and put them at risk.