Former Carisbrook Hotel owner Jacky Cheung made headlines in August last year after the Otago Daily Times exposed he had been charging tenants up to $400 per week for dilapidated rooms with no facilities.
Following the newspaper’s investigation, the Dunedin City Council issued Mr Cheung with a notice to fix and said it would work with support agencies to "consider the needs" of the people living there.
A council spokesman said a building under a notice to fix could not be used for "sleeping activity" and required Mr Cheung to notify the council of a change of use for the building, and have it approved, if tenants were to remain.
If tenants were to remain in the building, further work was needed so it complied with the standards of the Building Act.
But last year, Mr Cheung instead chose to lease the premises to a new leaseholder.
The new leaseholder had indicated there were no plans to use the building for sleeping accommodation, and so the notice to fix was resolved, the spokesman said.
The council had since become aware there had been some temporary occupation of the building by tenants, so a notice to fix was reissued on January 17.
Staff planned to visit the building this week to remind the leaseholder of their legal obligations and confirm they were complying.
If staff were satisfied the building was not being used for sleeping activity, the notice to fix would be resolved.
But if problems persisted, penalties could follow, the spokesman said.
"We do have the power to take enforcement action if problems persist, but we always try to start by working with building owners and leaseholders to resolve any issues."
