Members of the Glenrothes Area Committee have approved plans to demolish the Glenwood Centre building and make sure current occupiers will be found new homes.
Last month councillors at the assets and facilities committee agreed to a Compulsory Purchase Order (CPO) of the centre, as the first stage in the process.
It allows the local authority to buy the shops and flats so they can be knocked down.
The centre dates from the 1960s and complaints over the condition of the properties, and social problems, started almost on day one.
This situation has been exacerbated throughout the years with increased anti-social behaviour, drugs, crime issues.
This meant that when a consultation was carried out in 2017 the redevelopment of the area was strongly supported by local residents who felt the viability of the area was unsustainable and demolition was the only way forward.
This latest decision is intended to give those currently living in the Glenwood Centre confidence that they will be moving to a permanent new home that meets their housing needs.
Area Committee convener Councillor Fiona Grant said: “This is fantastic news for the whole area and particularly for the residents.
“They now have a clear idea of what the plans mean for them and reassurance that their housing needs are being given top priority.
“The wider community can also look forward to seeing things start to happen on the site and the plans for the regeneration of the area become a reality.”
The centre is located next to some more modern retail units, and it’s hoped any new developments would complement them.