Selling the two houses owned by the Green Party superannuation fund does not mean there was anything wrong with the scheme in the first place, party co-leader Metiria Turei says.
The superannuation fund has owned properties in Wellington for 12 years.
Those houses were rented by party MPs who usedtheir parliamentary allowances to pay the rent.
The Greens would now sell the houses to avoid confusion, Mrs Turei said yesterday.
The issue was raised recently when it was revealed that two MPs who lived in one of the houses had both been paying full rent using taxpayer's money.
That had been a genuine, one-off mistake and the money was repaid, Mrs Turei said.
"We're disappointed that we made a mistake and frustrated with ourselves that we were slow to correct it."
The investment in houses had been to provide "ethical investment".
The Greens had been calling for an independent review of all MPs' and ministers' allowances and salaries, and the issue over their housing had "contributed to the confusion", Mrs Turei said.
The trustees of the superannuation fund woulkd decide where to invest the money raised from the sale of the houses.
Other money from the superannuation fund was invested in shares in three companies.
Mrs Turei would not confirm suggestions that the houses were being sold to pay superannuation for leaving MPs Sue Bradford and Jeanette Fitzsimons. MPs have the choice to cash-out when they leave Parliament.
Another house owned by the fund was sold when former MP Nandor Tanczos left.
Green MPs from outside Wellington would now have to rent commercially, which could cost more money, Mrs Turei said.
She said a review of allowances should consider who was best to set the rules for public money given to politicians and whether the Parliamentary Service, which administers allowances, should be open to Official Information Act requests.
Mrs Turei believed an independent body should set the rules for allowances and salaries and it should be open under the act.
