The council is now taking action.
Under the District Plan, motels are consented for short-term visitor accommodation, not residential housing.
Council destination development manager Jean-Paul Gaston said the council was aware of the number of emergency housing and special needs grants motels in use when the ministry and the Ministry of Housing and Urban Development published monthly dashboards.
He said the council understood this type of motel use was winding down as need reduced.
“Council is not resourced to constantly monitor compliance. Just as with any business, it is the responsibility of the motel operators to ensure they comply with all relevant regulations and rules.”
He said government agencies were aware of this and “should be ensuring appropriate consents are in place” where they needed emergency housing.
Gaston said the council would make contact with the operators of the two motels to advise they needed consent to continue providing emergency housing.
Where there was still a genuine need for emergency accommodation, the council expected it would be provided safely, appropriately and in line with government policy.
Ministry of Social Development (MSD) regional commissioner Jacob Davies said it was the responsibility of businesses and councils to make sure any required consents were sought and granted.
“Requiring specific consents to provide emergency housing is a policy of Rotorua Lakes District Council, not MSD, and they hold responsibility for maintaining these.”
The Gibson Court Motel operates emergency housing in Rotorua. Photo / Kelly Makiha
Davies said that although contracted emergency housing had stopped, non-contracted options would remain available for people in Rotorua with a genuine need.
Agencies had been working to provide alternative accommodation support, including social or transitional housing or help to move into and retain a private rental.
As of the end of January, there were about 20 households in Rotorua emergency housing.
“MSD is committed to providing our clients with emergency housing that meets minimum standards,” Davies said.
“We acknowledge council’s role in ensuring that properties meet regulatory standards, but note that regulatory action here may limit the ministry’s ability to support those with an immediate housing need.”
‘We can go back to tourists’
The owner of Victoria Lodge, who spoke on the condition she was not named, said they did not have a different consent to operate specifically as emergency housing.
“We don’t mind, we can go back to tourists anytime because everything is already refreshed.”
She had recently completed a redevelopment of all 13 units, including new paint, kitchens, bathrooms, fencing and paving.
She said guests usually only stayed short-term until they could find a rental or other social housing.
She had owned the motel since about 2017 and moved into emergency housing during the Covid-19 pandemic in 2020, operating exclusively as emergency housing since about 2021 or 2022.
She conceded she had difficulty in mid-2025 with troublesome clientele having unwanted visitors, loud noise and children who ran across the busy Victoria Rd unsupervised.
The owner, who lived on-site with her two children, said she had to constantly tell occupants off but felt things had been a lot better during the past six months.
She said it was a lot harder for people to get emergency housing and she was no longer seeing the difficult people with many social issues as she had in the past.
The Rotorua Daily Post attempted to contact the Gibson Court Motel owner.
Hera Ihakara speaks about living near an emergency housing motel in Rotorua. Photo / Kelly Makiha
Hera Ihakara, who lives near the Gibson Court Motel, said it had improved.
Ihakara, who worked as a motel security guard when there was a proliferation of Rotorua emergency housing motels, said she kept an eye on the motel.
She said there were fights, loud noises and “comings and goings” last year, but she praised it now.
“It’s been quiet lately … They are really good over there.”
Getting emergency housing
The ministry said if someone asked for housing assistance, its first step was to look at all options to avoid homelessness.
Davies said while emergency housing was a last resort, it would always be available to those with genuine need.
Eligibility criteria was the same nationwide, and applications were assessed by frontline staff who considered whether other housing options were available.
”Our policy is to ask for a valid and clear reason before any emergency housing support is provided for people to relocate from outside of their region.”
Davies said they worked with staff at Te Pokapū – Rotorua’s housing hub. Granted applications were usually for seven nights. If someone still needed emergency housing after this initial grant, MSD met with them, Davies said.
MSD covers the cost of accommodation for the first seven nights in most cases. Clients then have to pay an emergency housing contribution.
The amount paid varied depending on the accommodation supplier used.
The Victoria Lodge owner would not say what she charged the ministry.
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.