Any payments above $5000 in total, including actual moving costs plus the cash grants, "will require sign-off by an MSD general manager".
David Zussman of Community Housing Aotearoa said the cash payments seemed to be a direct "incentive for freeing up the house, or your claim to a house, in Auckland".
Emergency housing agencies Monte Cecilia, De Paul House, the Salvation Army and Emerge Aotearoa all said none of their clients so far wanted to take up the offer.
Bernie Smith of Monte Cecilia said he was not recommending it because "it's setting up families to fail unless the Government moves to a model, like they do with refugees, where there are additional wraparound services with church groups and social services".
But Theodora Despotaki of Emerge Aotearoa, formed by the merger of mental health agencies Richmond Fellowship and Recovery Solutions, said "every single one of our clients has been given information about the relocation grant". But no one was interested yet.
Jan Rutledge of De Paul House said Work and Income offered the grant to one family last week, but they turned it down because their four teens wanted to stay in Auckland.
Jason Dilger of the Salvation Army said the grant could suit some people if Work and Income put services around them when they arrived in their new homes.
Meanwhile a 16-year-old cancer patient, who asked to be known as "B", will move into a "brand new" four-bedroom Housing NZ home today after staying at Te Puea Marae in Mangere Bridge for a week with her dad and four siblings. Her post on the Te Puea Memorial Marae Manaaki Tangata Facebook page reached 438,000 people in 18 hours and drew job offers for her dad and her older brother.
She told reporters that she just wanted to say "thank you for your love and support" to everyone who had helped.
Auckland District Health Board children's health director Linda Haultain said staff assessed the family situation of any child being discharged from Starship hospital and would refer a family to a health social worker if a housing issue was identified.
Ronald McDonald House chief executive Wayne Howett said his charity had rooms for 86 families of Starship patients and could have accommodated B's family if B had been referred from Hamilton, where the family lived before her illness.
But the family moved to Mangere in March to support relatives after B's cousin drowned at Hunua Falls.