"It relies on charity and philanthropy even though government agencies refer an awful lot of clients to them.
"The trust is grappling with many of the issues that cause people to be homeless. You can't just think you can put a roof over their heads and solve the problem."
Mr Twyford said another example of people being left to deal with things was Housing New Zealand's "retreat from the frontline" behind an 0800 number.
He said it was important Housing New Zealand acted like a responsible landlord and engaged with its clients. Having only two case workers operating in Northland was an irresponsible way to manage the country's valuable public housing estate, he said.
Labour's housing policy was also strong on affordable first homes, and would encourage lending and building at the lower income end of the market.
Ensuring no children grew up in a sub-standard home was the number one aim of the housing portfolio, Mr Twyford said. Landlords should be required to insulate properties and homes should be of a certain quality.
"It's time to set minimum standards here in the North. People have realised we've got Third World rates of children dying from poverty related illness."