The site of the demolished house was vacant.
Mr Toy said the organisation was notified of potentially contaminated properties through police investigations, information from the public and through detection by maintenance contractors and staff visiting the homes.
An initial test was done to determine if methamphetamine was present.
In the case of a positive result another test was undertaken to determine the level of contamination.
A reading of less than 0.5 micrograms per 100 square centimetres was deemed safe but a higher reading meant work was needed to make the building habitable, he said.
"Remedial measures can range from specialised cleaning through to re-fitting a property or even demolition.
"Testing can cost in the region of $1800 to $2000," he said.
"The cost of remediating houses affected by methamphetamine contamination can range from $20,000 to $40,000 for a specialised clean, while demolition of a small house can cost around $15,500."
Mr Toy said staff had been trained to spot possible drug manufacture and deal with tenants using or cooking P.
"We won't tolerate illegal activities in our properties and will evict tenants where there is evidence of drug use or manufacture."
Nicky Stratford, of Methsolutions, said she recommended anyone who had their property invested with Housing New Zealand got the house tested for the drug before ending their contract.
