"Eighty per cent of people that come to our place are looking for somewhere to live - emergency housing," Mr Wilson said. "These people are living on park benches and beaches and sheds and damp caravans."
Times had changed and finding homes for people was hard because what was available did not always meet the need, he said.
"For us, many of the clients we are looking after are mothers with five kids. Let's start matching them up [with appropriate housing]."
Mr Wilson said the transfer of homes to Tauranga services opened the opportunity for local agencies to make emergency housing more economical for the people in need.
"In a lot of cases, these houses have one or two people in them on a piece of property that could have three or four smaller dwellings - some real nice homes," he said.
Tenants in properties being sold would continue to be housed for the duration of their need and their rent payments were not expected to be affected.
Labour housing spokesman Phil Twyford said the Government's state house sell-off would not fix the housing crisis or better the lives of vulnerable families.
Social Housing Minister Paula Bennett said: "We know that vulnerable New Zealanders do better when services are delivered by local people for local people."