Referencing the street meeting held last weekend by residents to address the issue, she said she had met people who desperately needed accommodation.
"They (Housing NZ) are continuing to sell off houses when they know there are families who need housing," she said. "I don't accept at all what they are saying."
Moreover, Ms Lorck said the last thing people wanted was the Campbell St house sold. "They are concerned that it would drop valuations."
Last week, long-term residents David Moat and Judy Fletcher said the house had become an "eyesore".
They said if the house was not filled, the Government would say there was no demand and sell it below Government Valuation (GV).
"Which will bring down all the values to the other houses in our areas," said Mr Moat, who, with his wife Elizabeth, is trying to sell.
"But to try and sell your place now is just impossible."
Since the meeting, Ms Lorck had been contacted by Housing NZ.
She said she was set to meet the corporation next week when she expected a solution to the problem.
"It shows that when the community stands up we get action," she said.
"Housing NZ are on notice to sort out Campbell St and the surrounding area."
The Housing NZ spokesperson said the corporation was aware of the vandalism and neighbours' concerns and had boarded up the property to keep it secure.
"We encourage neighbours to contact us directly if they see any suspicious activity," the spokesperson said.
There were enough homes in Hawke's Bay to meet demand, with more than 2700 properties throughout the region: "We are continually housing people as one tenancy ends and another begins. In the last three months, for example, we have housed more than 80 families in need."
The Ministry of Social Development was responsible for assessing people's social housing eligibility, the spokesperson said.
