The Ministry of Housing and Urban Development will taking over responsibility for contracting motels, and motels could no longer be used for a mix of emergency housing and visitors/tourists.
The motels would provide emergency accommodation for whānau and tamariki, separate from other groups. Whānau would be able to stay in these motels while they looked for long-term homes, Woods said.
The contracted motels had outdoor spaces for tamariki, and appropriate laundry and kitchen facilities.
Roughly 80 families were already in the motels with another 21 families set to move in around July 9 and the rest by mid-July.
Woods said progress was being made by iwi, social service providers and officials to provide wraparound support to those whānau.
Rotorua-based social service providers WERA Aotearoa, Lifewise, Visions of a Helping Hand and Emerge Aotearoa had been contracted to manage the accommodation.
"Supporting the families living there to create environments where they can thrive and help them find pathways to more permanent accommodation," she said.
These providers were working with Te Taumata o Ngāti Whakaue to support whānau into housing through a housing hub, Te Pokapū. This was supported by the Ministry of Social Development.
"These groups will work together to assess, place and support people in emergency housing, based on a kaupapa Māori approach, offering support to anyone needing stable housing in Rotorua," she said.
In the next few months, Te Pokapū would be located in a physical hub in central Rotorua.
Woods said these measures would ensure "specific, separate" accommodation catering to the needs of visitors and tourists.
The ministry would not release the names of the contracted motels to protect the privacy of whānau living there and motel operators.