Council voted nine votes to three to sell the portfolio of 344 units. Councillors Yeung, Gallagher and Wilson voted against the motion. Councillor Macpherson was absent from the meeting.
The council chambers were full, with many pensioner housing tenants present, most of whom were upset by the decision.
Councillors who voted in favour of the sale felt social housing providers would provide a better service for the residents than council had.
Grey Power Waikato president Roger Hennebry said, "It is not just a house, it is their family they will have to move from [if they have to move].
"I'm still not happy you're selling them, but I am happy you're taking it upon yourselves not to evict [residents]."