The footage also shows another paedophile entering the bedroom while the teenager is there.
Jeanette Burns, Northern Regional Commissioner for Corrections told the Herald that as soon as they became aware of the CCTV footage, they contacted police to ensure the teenager's safety.
"We understand that no crime has been committed. The offenders shown in this footage were not breaching the conditions of their Extended Supervision Order (ESO), although they were breaking some house rules. Neither of them still lives at the address."
She said Community Corrections monitored offenders closely and they had been held to account when they had breached their conditions.
"The main aim of these ESOs is to prevent re-offending, that is, committing a sexual offence against a child. There is no evidence of re-offending by these offenders while they were living at this address.
"Corrections has more tools than ever before to manage the highest risk offenders, such as electronic monitoring, intensive monitoring (line of sight monitoring) and Public Protection Orders."
Accommodating released prisoners could be complex she said.
"They need a place to live and many landlords do not want to house them. No address would be approved if we considered it presented an unmanageable risk to the safety of the community. This address is not a prison."
Conditions of parole are set out in the Parole Act 2002.
"Special conditions are set by the New Zealand Parole Board and are tailored to mitigating the specific risks posed by an offender."
Police confirmed to TVNZ last night that the sex offender had been arrested however it remains what charges, if any, were laid.