The Tauranga City Council has reached a decision on the future of the Bella Vista properties, approving a plan to salvage, repair, remove and if appropriate demolish them.
The council bought the 21 properties after the Bella Vista development failed and issues were found with the homes and their sections.
The council paid $14 million to settle with the homeowners and received an insurance pay out of over $10 million.
Tauranga mayor Greg Brownless said the decision came down to either selling the buildings and land "as is" or salvaging what was possible and remediating the land before sale.
Mr Brownless says the decision made at the council meeting on Wednesday is positive.
"We want to resolve this issue properly, and by taking control of the process we can provide certainty to the people of Tauranga," he said.
"It’s all about doing the right thing for ratepayers."
It’s been proposed that work start on-site as soon as possible.
In a statement Tauranga City Council says other options for the future of the site had also been considered but were less desirable for several reasons, some of them financial, legal and safety related.
Mr Brownless said there would be consideration given to how to sell the properties in a way that offered the best returns while considering housing needs and benefits for the city.