Families have came forward saying their houses in the Dunedin suburb of North East Valley are cold, dank and making them sick.
One man told RNZ that his wife was effectively housebound because the dampness and steep steps inside and outside the house caused her chest pain and shortness of breath.
Community organisation The Valley Project manager Tess Trotter said community members were giving support, including offers to donate items, money and houses to rent.
"We are in conversations with several parties and are hopeful we can facilitate a positive outcome for these families.
"While the situation has been stressful for our organisation the response from our community has been heart-warming," Ms Trotter said.
"However, we have a history of activating community members to make improvements and to connect them to agencies that can assist."
A series of weekly drop-in clinics have been organised by the Valley Project to help people assess and create warmer, drier homes.
