The Government says Kainga Ora still needs to be reasonable amid a crackdown on rent arrears.
The Associate Housing Minister says Kainga Ora's owed $16 million in unpaid rent.
Currently around 10% are behind on their rent.
The agency says those willing to enter a repayment plan have their debts reduced, but those unwilling could have their tenancy ended.
Associate Housing Minister Tama Potaka told Mike Hosking those who need support will be helped, but those refusing to pay will face action.
Potaka says under the previous government, things got a little bit too loose with not enough being done to reclaim unpaid rent.
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The Mike Hosking Breakfast