Angus Council will demolish empty residential housing in Edzell to make way for new homes.
The council was forced to put the £3.5 million affordable housing project on pause in September after strong local objections.
The once-popular complex now lies empty after occupancy fell away in recent years.
That is despite some £600,000 of investment there over the last decade.
Inglis Court is a retirement complex, which has 24 one-bedroom properties, as well as a three-bedroom house, which was formerly the warden’s home.
A scheme to knock down the 25 flats and replace them with 21 new affordable homes was backed by councillors as far back as 2018, and received planning approval earlier this year.
Part of the project cash will come from the Scottish Government.
But as demolition loomed closer, the community rallied and an open-air protest meeting led to more than 750 locals signing a petition calling for Inglis Court’s return to sheltered housing.
At the full council meeting on Thursday, councillors considered four options for the future of the complex.
Councillors were offered four options to vote on, which would see the housing demolished, sold off, retained or given to a private company to run.
‘This building is no longer fit for purpose’
Communities convener Councillor Mark Salmond told the committee: “Many words have been spoken, positive and negative.
“I visited on Monday and I came away knowing in my heart this building is no longer fit for purpose and demolition and rebuild is the correct decision.
“We now have to move forward and decide what to do with Inglis Court. The new houses bring many overall benefits.”
SNPs Councillor Bill Duff said he agreed with Mr Salmond, adding: “We often get accused of playing politics with these issues.
“On this occasion I think we have to agree to do what is best for Angus and what is best for the people on our council house waiting list.
“I agree option one is the only solution. I don’t want to see any more delays for building more council houses and happy to support.”
Councillor Ronnie Proctor said the current state of the housing was “worse than some barracks” he’d stayed in while part of the armed forces.
Councillors all agreed to go forward with option one, which will see the retirement flats demolished and new council housing built.
Mr Salmond added: “I am delighted that council has come to a pragmatic decision to create new, high quality homes for which there is demand and will continue to protect people from homelessness.
“I am glad that we can start to address the housing need by directly addressing inequalities, increasing diversity and encouraging inclusion in North Angus.
“We can future proof Edzell as a place for everyone, including those who can’t afford private housing.