Investors in a leaky west Auckland apartment block rented by Housing New Zealand want the corporation to buy them out.
The investors claim the corporation was heavily involved in the design and construction of the building in 2004 and therefore has a duty to help solve the structural problems.
A body-corporate committee member, Adrian Chitty, says he bought an apartment because it came with a 10-year lease to Housing New Zealand and it looked like a rock-solid investment.
The building is now leaky, he says, and has toxic mould and structural problems that will cost millions of dollars to fix.
Housing New Zealand says its involvement has been to lease the 32 units from private owners and it does not accept liability for the problems.