Mr Bayzavi, who fled Iran three years ago, said neighbours whose homes did not have red doors were not targeted.
Both Jomast and G4S, which holds the Government contract to house asylum seekers, insisted that there was no deliberate policy to make them live in houses with red doors - but agreed to repaint the homes in order to remove any possible stigma.
A former local MP compared the red paint to the yellow stars that Jews were forced to wear in Nazi Germany. Ian Swales, previously Liberal Democrat MP for Redcar, said the doors were a "mark of separation" that "reminds you of Germany in the 1930s".
In February 2014 he confronted a G4S executive over the issue during a parliamentary hearing, but the policy was not changed.
After the latest revelations, Mr Swales said: "I thought it was shocking. I assumed the management of G4S would be equally shocked and would do something about it. To find out nearly two years later that nothing's been done is appalling."
Andy McDonald, Middlesbrough's Labour MP, added the red doors were "a way of marking people out that is reprehensible".