In his evidence-in-chief status, Chitungwiza director for urban planning Mr Conrad Machesa said Tanyanyiwa offered him accommodation after he was evicted from his Marondera lodgings.
He said Tanyanyiwa did not hide that he was the owner of the Chisipite home, which he is alleged to have bought using council funds.
Mr Machesa said Chitungwiza Municipality paid the US$1 300 rent a month.
He said he received a letter in May, which stated that an estate agency was now in charge of the house.
Mr Machesa said he had to move out since his family felt insecure.
The other witness was Irene Chagwizira, the personal assistant to the Finance Director at the council, who said her task was to prepare documents authorising the payment of rent.
The trial continues on August 2.
On the first fraud case, the State says Tanyanyiwa, knowing fully well that he had no money to buy a house, hatched a plan to defraud Chitungwiza Municipality and took US$165 000 from council to buy a house in Chisipite.
On charges of corruptly concealing a personal interest in a transaction from a principal, the State says during the period extending from September to December last year Tanyanyiwa allegedly offered the Chisipite house through his estate agent for rental to Mr Muchesa.
It is alleged Tanyanyiwa, with the intention to deceive, did not disclose his personal interest in the house to his principal (Chitungwiza Municipality) and council ended up paying him US$1 300 per month for five months as rental for his property.
As a result, council suffered a prejudice of US$6 500.
The former town clerk is also accused of criminal abuse of duty after he allegedly corruptly acquired three commercial stands using names of three different shelf companies.
He reportedly prejudiced his employer of US$170 000 when he allegedly diverted money meant to buy three Toyota Fortuners for other senior officials to buy his Toyota Land Cruiser V8 for US$170 000.
During the period extending from September to December last year on 50 different occasions, Tanyanyiwa is accused of corruptly authorising cash payments amounting to U$337 253 to himself and other top officials.
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