The decision was made possible by a constitutional amendment adopted in March which allows municipalities to ban homeless from public places for security, health and other reasons. A similar law had been earlier declared anti-constitutional by Hungary's highest court.
The ordinance passed Thursday allows the fining of homeless people living in the restricted areas. It was supported by councilors from the governing Fidesz party, its Christian Democrat allies and the far-right Jobbik party. Two left-wing parties voted against.
A protest by The City Is For All, an advocate group for the homeless, delayed the start of the city council session by several hours.