Anstruther flats under threat of being bulldozed have not been given up on, Fife Council insists.
Claims that properties in the half empty Mayview flats were no longer being let were denied by the local authority.
The council also stressed that demolition was not the only option being considered for the four blocks at Mayview Avenue and Mayview Court, which could instead be upgraded.
Of the 41 council-owned flats in the blocks which suffer from a poor reputation and antisocial behaviour, 19 are vacant.
The local authority said this was because people on the housing waiting list refused to move into them and that it was actively marketing the properties to potential tenants.
Housing manager Gavin Smith said: “There is no decision to stop letting these flats.
“Staff are continuing to try to let these properties but people who want housed are saying explicitly they don’t want to go to this area.
“We haven’t given up on the properties at all.”
Flats in the five-storey 1960s-built blocks were advertised and people approached with offers of tenancy there, he said.
Mr Smith also said there was a perception on the estate that demolition was the only option, but he insisted that all other options, including refurbishment and installation of lifts, were being considered.
East Neuk and Landward councillor Bill Porteous said the flats had been deteriorating for years and the problem should have been addressed before demolition was put on the table.
The Mayview flats, he said, had become stigmatised and were now negatively perceived in the community.
He said: “This was well signalled to the council, it was well signalled to social work and was well signalled to Police Scotland.
“No appropriate action was taken and now we are in this situation.
“There was no joined-up thinking, no proper communication between these organisations and this is where we have got to.
“We are in a situation in the UK, Scotland and Fife where we are short of affordable housing. This should never be on the table.”
His call for wider community involvement before the future of the flats is determined was approved by the council’s north east Fife area committee, as it gave the go-ahead for the options appraisal and establishment of a working group.
If they are knocked down the flats could be replaced by new housing or an East Neuk care village, including a care home for the elderly.
Other options are maintaining the status quo but with some investment and external and internal refurbishment with the addition of lifts and caretaking facilities.
Deterioration of external walls and stairwells has put them beyond economical repair but the council said issues were with the fabric of the buildings not their structure and there was no immediate risk.