The Auditor-General is launching an enquiry into emergency housing grants, after paying up to $3000 per week for private rentals.

From November 2017 until June last year, the Ministry of Social Development paid more than $38 million to landlords and property managers.

The grant is meant to be a short-term solution for seven days while a permanent house is found.

But Monte Cecelia Trust chief executive Bernie Smith told Mike Hosking some landlords were cashing in on getting hotel rates for a three-bedroom house.

"Property owners were evicting tenants to take advantage of the emergency housing payment."

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