Immigration New Zealand is looking into allegations of migrant sex workers being at the premises of a central Wellington motel.
Deputy Head of Immigration New Zealand (INZ) Stephen Vaughan confirmed an investigation was under way.
He said they received information about activities at the Harbour City Motor Inn on three occasions between July 2018 and January 2020.
"In all cases, the complaints related to the possibility of migrant sex workers being at the premises.
"INZ took steps to assess these matters however at the time there was insufficient information to meet the threshold required for further investigation."
But Vaughan said they were now gathering further information and INZ will continue to work with relevant agencies.
The Prostitution Reform Act 2003 (PRA) states that only New Zealand citizens and residents can legally work in the sex industry.
Harbour City Motor Inn was being used as an emergency housing provider during the period INZ received information about possible migrant sex worker activities.
There is no suggestion the subjects of these allegations were emergency housing clients.
A spokesperson for Harbour City declined to comment.
Last month police executed a search warrant at the motel on Webb St and located drugs at the property.
Ministry of Social Development regional director Gagau Annandale-Stone said the Harbour City Motor Inn has now ceased supplying emergency accommodation by mutual agreement.
"We put in place a plan to ensure clients that were accommodated there were relocated to other emergency housing or transitional housing."
Annandale-Stone said they don't have any record of complaints being raised with the Ministry regarding the migrant sex worker allegations.
The allegations come amid growing concerns about emergency housing.
Earlier this week Green Party co-leader and Associate Housing Minister Marama Davidson condemned some emergency housing as "inhumane".
National's housing spokeswoman Nicola Willis has raised concerns about crowded accommodation where families are reportedly being forced to raise their children next to gang members and criminal activity.