Residents in Lower Methil had a miraculous escape on Monday night when a car smashed into a parked car and sent it crashing into a block of flats.
Police have now traced the driver of the BMW vehicle which hit a Peugeot car after an appeal.
Police, fire and ambulance services were all in attendance and High Street was cordoned off for several hours until the damage was cleared.
Residents in the three-storey Erskine Court flats had to be evacuated while the building was assessed for structural damage.
A spokesman for Police Scotland said: “A number of local residents had to be evacuated from their homes while engineers assessed the damage to their building.
“Most have since returned, however work to stabilise the structure is planned.
“No-one has been reported injured as a result of this incident.
“Anyone with relevant information is asked to contact police on 101.”
Keith Brown, Fife Council housing manager, said: “Officers were in attandance at Erskine Court last night and have temporarliy secured the building but a full investigation will be carried out today (Tuesday) to determine the extent of the damage and the necessary repairs.
“Two households have been affected and we are in contact with them to discuss their housing options while repairs are being carried out.”