For the past few weeks council has been waiting on the outcome of the third hydrologist report after 18 of the 20 units were inundated by water after the April super storm.

The contention was whether or not it was storm water or flood water.

One resident, Col Webb, died during the disaster.

Two residents, Trevor Richardson and Joan Ford, did not have to leave their units as there were high enough out of the water’s reach.

Since the storm 17 residents are still living in temporary accommodation.

Dungog mayor Harold Johnston said council was recently notified that the third hydrology report did not change the situation.

“Consequently the insurance claim has been denied,” he said.

“But council has made the decision to refurbish the top 12 units.

“Tender documentation has already been prepared in the event the decision didn’t go in our favour.

“There is no time frame on when work will be completed, but the units will be brand new inside.”

The future of the bottom six units will depend on the risk of future flooding and council is currently seeking advice on the risk factors.

“We were waiting for a fork in the road,” Cr Johnston said.

“One road has now closed, so we will now go down the other road.

"Council has not given up on insurance and will continue to pursue other areas open to us."