"The Hawke's Bay team have a relationship with the whānau and are working closely with them to provide support.
Whitewood said when there was a fire in a Kāinga Ora home, Police and FENZ attended.
"Our customers cannot return to the house until it has been cleared as safe to occupy by the FENZ team.
"In many cases our customers will go and stay with friends and whānau until they can return to the home."
She said if that was not possible, Kāinga Ora organised alternative accommodation.
"At the address, the fire occurred in a shed on the property.
"Our tradespeople, as a matter of urgency, removed the shed as soon as investigations were complete. The property is now safe and our customers have been able to continue staying in the home."
Spokespeople for police and fire and emergency services said the fire occurred in a small stand-alone shed at the back of the property.
A police spokeswoman told Hawke's Bay Today that two males aged 18 and 16 years were in the shed at the time of the fire.
"Both youths were hospitalised."
A St John spokeswoman said two ambulances and two rapid response units responded to the scene.
St John treated and transported the two teenagers in a critical condition to Hawke's Bay Hospital.
The police spokeswoman told Hawke's Bay Today the 16-year-old died on February 13 as a result of injuries sustained.
"Police extend their sympathy to the family of the deceased at this time."
The 18-year-old remains in hospital in a serious condition.
"No other fire damage occurred at this address or neighbouring properties," she said.
"Inquiries into the cause and circumstances leading up to this event are still under investigation."
An eye-witness to the fire who wished to remain anonymous told Hawke's Bay Today that she lived in the street behind and like several neighbours felt the force of and heard the explosion.
"One of the people in my household was outside in time to see the fireball and I saw the embers rising from the property.
"It felt and sounded like a car had crashed into our house even from so far away.
"It was followed by two further explosions that looked like fireballs and left embers floating for some time after.
"The force of the explosions and the noise was heard at least another street over."