The Rotorua District Mayor says appropriate social, transitional and affordable housing is needed - strictly for Rotorua locals

Four Fenton Street motels will no longer be contracted to provide housing for homeless people.

But the Ministry of Housing and Urban Development intends to extend the contracts of seven motels until the end of next year.

There's hope three could be dropped before then - as residents are prioritised for new Kainga Ora homes.

Mayor Tania Tapsell says seeing the motels being used for emergency housing beyond the current contracted period would be disappointing for Rotorua.