Residents say they are to report a planning decision to the Local Government Ombudsman.
Campaigners were angered after Hyndburn council approved a 16-bedroom multiple occupancy house on Barnes Street in Accrington to help homeless people earlier this month.
An 87-signature petition was submitted opposing the scheme and claiming it would be ‘detrimental’ to the area.
Laura Rawcliffe, of Lee Street, warned they will seek legal advice before taking the matter to the Ombudsman. She said: “Apparently letters were
sent out [by the council] to the residents in the local vicinity saying this was going on. However only a select few houses where I live had one.
“We’ve been round and asked quite a few people if they knew anything about it prior and the answer was no.”
A Hyndburn council spokesperson said: “We are sorry that Ms Ranmjmwcliffe is dissatisfied with the council’s decision in this instance, but we believe that we have handled this planning application correctly and in accordance with legal requirements.”
Planning agents previously said it was in the applicant’s best interest to see the scheme ‘run and controlled very well’.