A new bid is underway to continue using seven Rotorua motels for emergency housing.
Rotorua Lakes Council said it had been officially notified that the Ministry for Housing and Urban Development was submitting resource consent applications next week.
"In its regulatory role, council has no choice but to process the consent applications," said Mayor Tania Tapsell.
"The current consents for contracted emergency housing motels were set to end this December. Seeing these motels used for emergency housing beyond that date would understandably be disappointing for Rotorua."
But she said it was positive to see there were also plans to reduce the number of motels from 13 to four within the next 12 months.
"Our focus also needs to be on solutions for building appropriate social, transitional and affordable housing, strictly for Rotorua locals," Tapsell said.
"Iwi partners, as significant land owners, continue to play an important role in leading local housing solutions and we'll keep working towards these better outcomes together."
RNZ