The source was horrified the community was footing the bill for his stay - which could be in excess of $6000 if the full tariff was being paid - and thought he should be remanded in custody until he could firm up long-term accommodation.
The man was sentenced to home detention in March after admitting a raft of charges.
Since then he has been charged with three new counts of assaulting a woman with intent to injure.
For legal reasons, the Herald cannot name the man at this stage.
At his most recent sentencing he was ordered by the court to serve his time at an associate's home - owned by Housing New Zealand.
The associate moved out soon after sentencing and HNZ then asked the offender to leave.
He was then moved to a motel, where he remains.
Earlier this month Corrections confirmed it had provided the man with "emergency accommodation".
It refused to answer specific questions about the case.
On Monday the Herald sought further comment from Corrections after learning the man was still being housed at the motel.
It took the agency two days to provide a response.
Again, it refused to answer specific questions.
Lower North Island operations direction Matire Kupenga-Wanoa confirmed the emergency accommodation had been extended.
She would not say for how long or provide detail of the cost.
"The offender is complying with the conditions of his home detention sentence," she said.
"This offender is being actively supported by Community Corrections to source and secure long-term accommodation."
Kupenga-Wanoa said in some regions rental accommodation that offenders could afford was "limited".
"Probation officers work with offenders in the community to support them to live crime-free, and comply with the conditions of their sentences or orders," she said.
"Their work often involves problem solving with offenders and assisting with practical support around employment, life skills and accommodation.
"If suitable long-term accommodation cannot be found, Corrections will advance an application to cancel the offender's sentence and ask the judge to impose a term of imprisonment."
Corrections would not comment on the new charges the offender had racked up while on home detention.
Kupenga-Wanoa said the Ministry of Social Development was funding the emergency accommodation.
She explained that from October last year Corrections had "a new process in place" with the MSD for providing emergency accommodation to offenders subject to court and parole board-imposed sentences and orders in the community.
"This process provides that Corrections sources and funds emergency accommodation for the highest risk offenders, including those subject to an Extended Supervision Order, or Parole where the individual is subject to electronic monitoring," she explained.
"MSD is responsible for providing accommodation for all other offenders."
Under New Zealand legislation, a sentence of home detention requires an offender to remain at a "suitable and approved residence at all times and be electronically monitored 24 hours a day, seven days a week, unless approval to leave is given by a probation officer".
The sentence is designed to help offenders to maintain family relationships, keep working or actively seek work and attend training or rehabilitative programmes.
Kupenga-Wanoa earlier said the new charges the man was facing would factor into the agency's assessment of suitability of any proposed address.
"Corrections will not comment on the charges the offender faces as the matter is currently before the courts."
Kupenga-Wanoa said Corrections' primary concern when assessing the suitability of an offender to serve a sentence of home detention was public safety.
The source thought the situation was a joke - particularly given the new charges.
"I find it shocking - so much for seven days, some people are so privileged," she said.
"Putting him up in a motel ... Corrections should be ashamed of themselves.
"Why are they being so soft on him?"
