UP to 60 residents are planning to defy the bulldozers by refusing to move from their homes.
Demolition work is expected to start at St Hilda's, in Middlesbrough, next week.
Although many council house tenants are leaving, dozens of home-owners met this week to reaffirm their determination to stay put.
Councillor David Budd, Middlesbrough Council's executive member for regeneration, said: "So far, more than 70 former council tenants have moved to new homes or have a move booked in, while we have also made offers for the houses of more than 40 owner occupiers.
"That means the number of empty properties has increased and so demolitions are taking place.
"We've been specifically asked by residents to knock these buildings down as they're naturally concerned about their appearance and condition."
But pensioner Henry Woodier said: "I am not moving. The householders are not moving.
"I have lived at St Hilda's for 69 years - I was born here in 1936 and have lived in my present house for 30 years.
"It's really upsetting and disgusting what they (the council) are trying to do. Everyone feels very bitter and none of the householders will move."
Mr Woodier refutes council claims that local people are calling for their homes to be demolished.
He said residents want the area cleaned up, not flattened.
The St Hilda's neighbourhood is to be cleared and absorbed into the £500m flagship Middlehaven redevelopment of Middlesbrough's old dockland.
Coun Budd said: "We are now into the process through which St Hilda's is becoming part of the Greater Middlehaven development, with all the promise that holds for Middlesbrough and the Tees Valley.
"We are managing that change so that the people who currently live in St Hilda's can have some certainty about their future as soon as possible, have a reasonable and safe environment while they remain in the area, and can move on with the minimum amount of stress."
He said former council tenants in St Hilda's have been offered housing in the area of their choice.
A council spokesman said the authority was negotiating with owner occupiers to buy their homes and had offered a support package, including a "bridging" payment of up to £20,000 to help them buy another property.
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