A Rotorua Lakes Council spokesperson said Restore Rotorua Inc and their legal representation had a meeting with the council last week.
At the meeting, Restore Rotorua Inc asked for all six in-process consent applications to be given to an independent commission panel so that the applications could be assessed together in a fair and impartial way.
Restore Rotorua Inc's lawyer received an email on Friday confirming the council was "proceeding to engage and appoint independent hearings commissioners."
"My understanding is that the council is going to appoint three commissioners who will make their decisions based on facts," Restore Rotorua Inc spokesperson Trevor Newbrook told the Rotorua Daily Post.
"It's great news."
Newbrook said the decision was a "win-win" for everybody but there was still work to be done.
"The battle is not over to stop Rotorua city centre from becoming an emergency and transitional housing dumping ground," he said.
"We will be participating in the hearings to protect the economy and character of our city, and ensure emergency tenants are properly housed."
Newbrook hopes the notification hearings will make the resource consent process more open and transparent.
"I just think the ratepayers and residents of Rotorua should have a say," Newbrook said.
"We appreciate there's a need for [transitional housing] but the Government has to look at how it affects everybody and find a solution that benefits everybody.
"Two adults, two children and a dog living in a studio motel room for months is not really a solution that is improving children's lives."
A Rotorua Lakes Council spokesperson said notification hearings using Independent Hearing Commissioners are not a usual process, however they have been used in the past.
The council will next go through a process of evaluating commissioners based on their expertise, checking their interest and availability and make the appointments.
Once appointed, the commissioners would be given the authority to make decisions on behalf of the council on the notification process and "the subsequent substantive decision to grant or decline each application."
Rotorua Mayor Steve Chadwick previously told the Rotorua Daily Post it wasn't appropriate for her to comment on these events as an elected member.