Housing New Zealand is rejecting claims there is a low-income housing crisis in Napier and says its priority remains people who urgently need a home.
The agency is responding to criticisms from families and a local councillor who say people are living in overcrowded conditions while dozens of state houses are empty.
Housing New Zealand general manager of asset development, Sean Bignell, says many of the vacant houses have been vandalised and need redevelopment.
He told Radio New Zealand's Morning Report programme that people with urgent housing needs are being cared for as a priority.
He says if people have grievances they need to tell the agency as soon as possible.
Mr Bignell says people may be reluctant to come foward because they might not be eligibile, but if they are struggling to find a private rental, they may be eligible to reapply for state housing.