Waiariki MP and Maori Party co-leader Te Ururoa Flavell's electoral agent Aroha Bray said the marae had chosen the woman from the hub Te Ururoa Flavell's office set up earlier in the year.
"We have just stayed in touch with her and she had no luck finding a private rental. She and her children were boarding with a friend in an overcrowded situation."
Ms Bray said the woman was a working solo mother.
"The marae committee are so happy to be helping out someone at this time of year," she said.
Mr Flavell said he needed to take his "hat off to Eraia and the Apumoana Marae Committee for creating a space for whanau in need".
He said even though the housing hub was no longer operating, helping people who were homeless was still one of the biggest workloads for his staff in Rotorua.
"They go all out with government agencies, local service providers and community groups to find these people decent and affordable accommodation.
"I'm pleased that more funds are being allocated to battle homelessness in my electorate, which is something I've been pushing for in Parliament and that I'll continue to advocate for because more still needs to be done.
"I'm thinking of our families in need, especially at this time of year and I want to thank all those groups in the community who are giving their time, love and energy to support them. No child should have to worry where they're going to sleep tonight, tomorrow night, next month, next year," he said.