The housing of 65 families in emergency accommodation could be under threat, as the Rotorua Lakes Council takes legal action against several motels.
They say nine emergency housing motels have refused to engage and show they're compliant.
Emergency housing is the talk of the town in the tourism hotspot, with some saying operators are costing the destination its prized reputation among visitors.
The council says accommodation operators also providing emergency housing are required to have a dialogue with council on regulatory compliance.
But some have failed to come to the table. Nick Truebridge has the story.
The Ministry of Social Development has just responded to that legal action.
Bay of Plenty Regional Commissioner Mike Bryant says MSD has a good relationship with Rotorua Lakes Council and is happy to work through issues as required.
He acknowledges the council's role overseeing the Resource Management and Building Act, and that enforcement action may affect suppliers and MSD clients.
Bryant says steps to comply with council regulations are for the motels to take, given they are private businesses.
However, MSD has encouraged them to engage with Rotorua Lakes Council.