The issue of motel use for homeless accommodation has proved contentious in the tourism hub, with claims Rotorua has become “a dumping ground for the country’s homeless”. RICKY WILSON/STUFF Housing Minister Megan Woods announces $1b funding to speed up housing development. Video first published in June 2021. The spectre of reputational damage also forced Mike Gallagher, the chair of the Rotorua Association of Motels, to create an online list of Rotorua motels that do not take MSD clients. Darren Toy, Kāinga Ora Regional Director Bay of Plenty, said the purchase is good news for those in need of housing.