Tauranga City Council says it is taking legal action against people involved in the failed Bella Vista development.
Homeowners in the Lakes development were evicted in March due to council concerns about the construction and inspection of the homes.
The council said in a statement that the "charges relate to non-compliance with the Building Act and were served on the parties today".
Earlier this month, 21 homeowners said they intend to take the council to court seeking a larger payout than has already been offered.
Homeowner Sarsha Tyrell told media the council offered to purchase the homes for the same price the owners paid for them up to nearly three years ago, which would "essentially, leave many of us in a situation where we would not be able to re-home ourselves in this market and strip us of an opportunity to potentially own a home again".
"What we are asking is to be restored to the position that we would have been in had the council properly carried out the work that we trusted them to do like any of you would," she said.
The council last month said it considered the offer a fair and reasonable approach to make sure homeowners are compensated for the amounts that they have spent through this process.
It included an additional amount to reflect the emotional toll the ordeal had taken, the council said.
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