Hastings Mayor Lawrence Yule said last month the Totara St incident was more serious than the Joll Rd relocation.
In an email sent to Totara St residents yesterday, the council's acting group manager of planning and regulatory services, Malcom Hart, said case files relating to the relocation of homes by Mr Tawhiti in Hastings were yesterday sent to the council's lawyer for review.
"Council anticipates that charges will be laid against Mr Tawhiti as a result of this investigation," Mr Hart said.
Mr Tawhiti said last night he was surprised to learn of the contents of Mr Hart's email because he had been expecting the council to send him a list of questions to be discussed at an upcoming meeting with him before it completed its investigation.
"I don't know how they can prosecute someone when they haven't actually done that process," he said.
Mr Tawhiti has previously said his property developments involve bringing relocated homes, and the sections they sit on, up to a high standard but that takes time.
The neighbours of his Totara St development were further outraged last week when the council told them that the houses moved on to the street could contain asbestos.
Mr Tawhiti said at the time the claims had not been proven and he would take appropriate measures and have the asbestos professionally removed if it was found to be present.
He said the properties owned by the neighbours who were complaining were also likely to contain asbestos.