A NSW council is considering taking over a retirement home site amid a battle between a group of seniors and their care provider over its proposed closure.
Originally dubbed the 'tenacious 10', nine residents remain at the Byron Bay home, refusing any push from Feros Care to move out.
The provider said the facility had to close because it no longer met the federal government's higher requirements for residential aged care.
Feros Care chief executive Karen Crouch told AAP the Aged Care Act obligated the organisation to guarantee a resident would not need to move elsewhere if they needed a higher level of care over time, such as increased nursing attention.
"We cannot provide the full spectrum of care required ... without compromising the safety and quality of care," she said.
The residents say they have not been offered suitable or affordable alternative accommodation and enjoyed living there.
The home was slated to close on Wednesday but due to the refusal of residents to leave, it will continue to operate - but not indefinitely.
Byron Shire councillor and lawyer Mark Swivel, who is acting for those affected, said the residents remained in limbo despite Feros Care saying it wouldn't evict them.
Feros Care announced the closure in February and was required to help residents find alternative accommodation before the site could shut its doors.
Ms Crouch said the small group of remaining residents had refused help and didn't respond to written offers to support a move.
Byron Shire mayor Michael Lyon accused the organisation of changing its story to suit its goals.
"We've all doubted the story that Feros was feeding us from the start around the finances," he told AAP.
"They passed a recent audit on what they were required to provide in terms of care.
"So it doesn't seem to be anything indicating a massive overhaul of facilities is required."
Ms Crouch said the decision was not financially-motivated.
Feros Care is considering plans to redevelop the site into "affordable seniors' accommodation" but has not submitted an application.
The facility is on Crown land which would need approval from government to be redeveloped.
The local government will consider development proposals but the mayor said the council is also looking at whether to take over managing the site.
"If Feros continues to not meet the expectations of our community then we are looking at alternatives, and that might be an alternative provider with the council as the Crown land manager," Cr Lyon said.
The home was constructed 33 years ago as a low-care hostel which Feros said was "not designed or built to the standards and requirements of a residential aged care site".
