The Whakatāne District Council is being accused of pressuring Matatā locals out of their homes after a landslide devastated the town in 2005.
Three properties have been demolished, and 34 others on the Awatarariki Stream fanhead are deemed high-risk and earmarked to be destroyed.
The council is following its 'Managed Retreat Package' process for properties in the high-risk area as a way "to mitigate the risk to life and property from any future debris flow events".
Under the Bay of Plenty council's 'Regional Policy Statement - Natural Hazards', the Whakatane council is legally required to take steps to reduce the high loss of life risk.
Part of the plan is to provide eligible property owners with offers for the purchase of their home at market value.
It says the proposed outcome of the plan is to alter the zoning from residential to coastal protection to reflect the hazard risk, and to remove the ability for land to be used for housing.
Local resident Rick Whalley claims councillors offering payouts are trying to bypass the law.
"They're saying you take it now or you get nothing. And as soon as they [residents] take up the offer and sign and move out, the council come in straight away and pull down their houses," he said.
"So they're putting that sort of pressure on you to sign without going to court."
He said locals reinvested in their homes on council advice, and the demolitions have come as a shock.
Whalley claims there is a lack of communicationa and residents have been left in the dark.
"Councils are meant to be working for you, that's half the trouble, they haven't worked with us. They've done things to us and told us what they're going to do rather than asking us. So we find out through the media most of the time what's happening."
He added families are scared they'll lose their livelihoods and feel like they have no place to go.
Changes to the Whakatāne District Plan were consulted on in 2018 after the public was notified. Eight submissions were received.
"The District Council is also working to ensure the Matatā community, ratepayers and interest groups are kept informed about the Managed Retreat Programme and the transition process," the council website says.
A second resident Rachel Whalley said the uncertainty is hurting the community.
"It's sort of been death by a thousand cuts really, because they're ticking people off. People are scared about losing everything. And that's what our neighbours say, we can't risk all we've worked for."
She added that while the future of the properties is now in the hands of the courts, people are still being pressured to leave.
The Whakatāne District Council has been contacted for comment.
The council's website says the managed retreat package process is part of its legal responsibility to reduce the risk to loss of life on the stream's fanhead to a lower level.
While an engineering solution was initially a development focus, the council said it was advised by engineers that there were no viable solutions that would reduce the risks.
"After receiving this advice, the District Council agreed that the most effective way to reduce risks, meet its statutory requirements and provide the best options possible for locally-affected property owners, was through a managed retreat approach for properties in the high-risk area," it said.
Matatā property owners in the high-risk area have until January 31, 2020 to accept or reject the council's acquisition offer.
