A south Auckland woman living in a car with her two children was told she would have to wait weeks for public housing.
The Nelson Night Shelter Trust was set up by All Saints Anglican Church and Society of St Vincent de Paul in 1986.
Neil Holdom said it was an indictment on the lack of government investment in social housing.
"Every Aussie that visits Rotorua helps save a job and keeps a business open and if they can't find the accommodation they need they will go somewhere else."
"We heard anger last night, but actually it is frustration from local residents."
A researcher studying the plight of the homeless says she was "extremely shocked".
"I'm not looking for handouts - neither are a lot of the families in this situation."
