The council had been working with the owner of the Parnell lodge that went up in flames over building issues, Auckland Deputy Mayor Desley Simpson says.
City Garden Lodge had "a number of issues that we were working through last year", she told RNZ's Morning Report.
Simpson later confirmed the final council inspection was due to take place on Tuesday.
Ten people were evacuated from the building around 4.30pm on Sunday, as large flames were seen and thick black smoke billowed across the suburb.
At its peak, 16 fire appliances were called to bring the blaze under control, with firefighters remaining on standby overnight.
The lodge was not being used as emergency accommodation, the Ministry of Social Development has confirmed.
Parnell's City Garden Lodge is seen the morning after it caught fire. Photo: RNZ / Jordan Dunn
There were a number of things the building was non-compliant on in July last year, Simpson said, to do with external escape routes.
However, she said a short-term repair was in place and it was due to be checked this week to see if there was a permanent solution.
The building got a warrant of fitness in November last year.
Simpson was unable to confirm if the council was satisfied the building met fire safety requirements, and said she would have to check with her team later this morning.
Investigations into fire's cause continue
An RNZ reporter at the scene on Monday morning said some local residents had described harrowing scenes as lodge occupants scrambled out of the building's windows to escape Sunday afternoon's fire.
Firefighters remained on standby overnight after the City Garden Lodge in Parnell went up in flames on Sunday. Photo: RNZ / Finn Blackwell
Firefighters were no longer at the scene but FENZ investigators were expected to return to the scene to continue investigations on Monday.
Police also said they were continuing to investigate the blaze.
They asked anyone with footage or information to come forward
Praise for fire crews
An RNZ reporter at the scene said smoke could be smelt from a block away on Sunday, with thick plumes of smoke spilling out onto the street.
Local MP David Seymour was also at the scene, and said crews had done an extraordinary job controlling the blaze.
"Obviously, they couldn't save a building that is a 120-year-old wooden building, already alight, but they prevented the fire spreading, and they allowed people to escape," he said.
The fire at City Garden Lodge could be seen across the city. Photo: Supplied
Residents near the scene said it was only a matter of time before something happened at the backpackers.
John Eichelbaum said residents at the lodge were often unruly.
"The police are down here all the time."
Seymour said there had been "a lot of unrest and disturbance" from three hostels in the area, but that was only caused by a relatively small number of residents and "good people" also lived there.
According to the hostel's website, the building was originally the embassy of Queen Sālote Tupou III, who ruled Tonga from 1918 to 1965.
Its visitors ranged from "young people and students on a shoestring budget to open-minded mature travellers", the website said.