The agency is reviewing hundreds of developments across the country, as Housing Minister Chris Bishop has said there would be an overhaul of its operations.
Among the developments on hold is the 11-home section of Albertson Ave, Port Chalmers — a move which has angered the West Harbour community board and various tenants in the area.
A Kainga Ora tenant, who did not wish to be named, said the situation had left in her in limbo.
She said Kainga Ora had promised her first right of refusal when the new Albertson Ave homes were built.
"A couple of years ago the rumours started that Kainga Ora were going to replacing the existing homes in our street with new builds. Whenever I asked for an update there was little to no communication until they decided you were to move," the tenant said.
The tenant said she fought hard against leaving the street where her children had grown up and had connections but, ultimately, Kainga Ora moved her on.
"I wanted to stay in our area, so was placed into a small flat with little sun and a small yard.
"Over the year I have been at this flat, my power bills have doubled and there is mould growing up the walls.
"It is extremely small and not suitable for our needs. However, I was told this was only temporary, so was prepared to put up with it.
"Whenever Kainga Ora is questioned about what happens to tenants who are shifted due to new builds happening, they always respond with something along the lines of ‘all tenants have been relocated into suitable housing’. But that's not necessarily true."
Kainga Ora regional director Kerrie Young said it took considerable care to find the displaced tenants alternative Kainga Ora homes that suited their individual needs.
"When the new homes in Albertson Ave are completed, we will place people in them who have highest priority housing needs.
"Where customers who previously lived in Albertson Ave have indicated they might like to move into one of the new homes, we have been clear we cannot guarantee this, as there may be others with a more serious housing need or higher priority on the public housing register at that point in time," Ms Young said.
Although part of the Albertson Ave development would go ahead — providing nine homes — the second part providing another 11 homes was under review "with a focus on priority locations and best value for money".
West Harbour community board deputy chairwoman Kristina Goldsmith said the lack of certainty upset a lot of people.
"We knew that Kainga Ora couldn't 100 % promise these people would all get first preference, but they all need something to hold on to.
"This community was promised something and now it’s not going ahead."
Ms Goldsmith said the community board was planning to send a letter to Kainga Ora and also to Mr Bishop demanding answers.
The Albertson Ave, Port Chalmers project is one of 18 Kainga Ora Dunedin projects under review.
In total, the projects would have provided at least 138 homes for the community.
As of June, there were at least 398 Dunedin people on the public housing register.
