The maximum penalty for failing to comply with the notice was a $300,000 fine and imprisonment for a term not exceeding two years.
On conviction, there was a continuing penalty of $10,000 per day the offence continued.
A lesser action would be to issue an infringement notice with a fine of $750.
Hastings District councillor Wayne Bradshaw said "retrospective" resource consent was granted for the houses on Wednesday - the day the abatement notice was to expire. A dispensation was also granted for density rules, allowing all three houses to remain on the section.
"It's a bit of a pointless exercise to stand up and serve an abatement notice, probably knowing it will never be called upon."
Mr Bradshaw first became aware of Mr Tawhiti in October last year, when the council fined him $300 after he moved an ex-state house on to a Joll Rd, Havelock North, section before a consent was granted.
A retrospective resource consent had also been granted for the Joll Rd house.
"I thought, well, give him the benefit of the doubt.
"Then blow me down, the same thing happens a month later.
"I feel very sorry for the Totara St community."
A council spokesman said staff were still investigating planning issues involving Mr Tawhiti and a decision was "expected to be a few weeks away yet".
Hastings Mayor Lawrence Yule said there was "no logic" behind the consent being issued the day the abatement notice expired.
"It just happens to be when they've processed the consent."
But moving the houses on to the property without consent was "a separate, regulatory issue" and was an illegal act. He said council was looking at all available options in relation to Mr Tawhiti, including prosecution.
