Kiama Municipal Council has to reclassify the land that Blue Haven Bonaira aged care facility sits on before the home can be sold.
When the Council acquired the land in 2017, they failed to classify it correctly, and so it remained ‘community land’.
Kiama Municipal Council agreed to sell Blue Haven Bonaira in October last year.
A council planning proposal stated, "The current community land classification is not an appropriate classification given the existing residential care facility which does not provide public access to the community," the Illawarra Mercury has reported.
"Without evidence of the land being considered by council and an operational classification via council resolution, the land automatically defaults to community land and in order for council to explore the sale of the land, it must go through the necessary reclassification process,” the proposal said.
The Council will hold a meeting on 22 May on the issue and is accepting written submissions. It will prepare a report for councillors ahead of making a recommendation.