Contractors have started work on removing Rotorua's Community House.
All tenants have now moved to alternative homes around the city with the three-story Haupapa Street building to come down by mid-September.
The building, constructed 50 years ago for Government Life Insurance, was bought by the council in 1993 to provide affordable accommodation for local volunteer and community organisations.
News last year of a potential $2.4 million bill for earthquake strengthening prompted the decision to instead demolish the building.
Rotorua Lakes Council's Strategy and Partnerships group manager Jean-Paul Gaston said once that decision was made as part of the 2015-2025 long-term plan process it became critical to find suitable homes for the tenants.