There have been stories of families living in motels overrun with crime and violence and taxpayers paying out millions of dollars for substandard accommodation.
The government is moving to clean up the problems - at first in Rotorua where demand is greatest - a year after ministers were warned emergency housing was posing a risk to public safety in the city.
It will directly contract motels for emergency accommodation in Rotorua to group families and children together in particular motels and provide social support services, at a cost of around $30 million a year.
The mayor of Rotorua, and former Labour Party MP Steve Chadwick spoke to Corin Dann.
