Residents have set up their own political party to fight plans to use a former hotel as a hostel for homeless families.
St Catherine Lodge Hotel in Hove is currently home to 51 families who were moved into the premises by the city's housing department without planning permission.
Residents in nearby Osborne Villas were so outraged by the decision they have established the Concerned Residents Action Party.
They are hoping to field their own candidates in future local and general elections with the hope of creating councillors and even an MP.
Party secretary Stephen Leonard said the change of use at the hotel was only the latest in a series of incidents which had angered residents in the area.
He said: "We are getting sick and tired of the way Hove is being sidelined and this was the last straw. This historic and much-needed hotel is a vital facility for the city. The underhand and deliberate change of use must not be allowed to stand.
"We are thinking of fielding our own local government candidates and a successful campaign will result in a return to some measure of democracy. If our voices are ignored, there will be consequences at the ballot box."
Mr Leonard said the party had won support from more than 40 residents and it was hoped to attract more people to become members.
The hotel in Kingsway was sold at the beginning of October to London-based Top Class Investments, which invited Brighton and Hove City Council to block-book the hotel to ease its housing waiting lists.
The first residents knew about this decision was when they saw workmen carrying bunk-beds, small cookers and fridges into the building.
After a query by The Argus, the council began an investigation into residents' concerns, only to discover it was its own housing department which was responsible for the unapproved change of use.
Planning officers are now demanding a planning application is submitted by the housing department so the future use of the hotel can be decided as soon as possible.
A council spokeswoman said: "We have not received the application yet but a meeting has been arranged with the owner's agent, our housing officers and our planning people to discuss what is expected."
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