Spokesperson Craig Jones told RNZ more than 200 residents unanimously decided to go to court because they were “frustrated” with the council.
“They’ve just refused to negotiate, absolutely refused, they’ve done all this behind everyone’s back.
“They [say they] all want to be open and transparent and that couldn’t be further from the truth.”
In its statement of claim to the Napier High Court, the association said the community members had a “legitimate expectation” that the decision would be made in an “open, transparent and democratically accountable manner”.
But it said the council had “acted contrary to the legitimate expectations of the community”.
The association wants the court to quash the council’s decision.
The council told RNZ it was taking legal advice on the matter.
“It’s not appropriate for us to address the substance of the proceedings while they remain before the court, therefore we won’t be making any further public comment,” a spokesperson said.
The court documents also said councillor Sally Crown had failed to declare a conflict of interest in her vote, as her business was a contractor to Kāinga Ora.
Crown also declined to comment, citing the matter was before the courts.
-RNZ