Mount Victoria Residents' Association president Elaine Hampton said NZTA's delayed response had put people at serious risk and the tunnel should have been closed immediately.
"Over a thousand people a day walk and cycle through that tunnel - mothers with children take them to school through it - it's just not safe.''
Ms Hampton also criticised NZTA for not informing locals of the potential hazards identified in the report.
"I'm sure that they've been extremely economical with the truth.''
The report also recommended that NZTA increase the frequency of tunnel inspections to mitigate any risks, which it did.
NZTA Wellington state highways' manager Rod James disagreed that the response had been slow.
"We needed to work out how we were going to remove the ceiling, we needed to do the design work around it and my understanding ... is that we effectively did this work as fast as we could.''
Mr James said it had also been established that the ceiling was more structurally robust than the report suggested.
"Some of the things that have been suggested are that we have allowed people to use that tunnel when it was unsafe. If we had come across anything during our inspections we would have closed the tunnel, of course we would.''