The Ministry for Social Development (MSD) has apologised for saying a family in emergency motel accommodation, costing more than $2000 a week, has been repeatedly evicted from other houses.
But it still said Tuaine Murray, her husband and her son, who has a disability, had been required to move from at least two properties.
Ms Murray said she had never been evicted.
She said she did flee a state house late last year after armed men showed up demanding money.
MSD said the family not only owed $340 in rent but contractors who went to the property found blood and a gun and the house later tested positive for methamphetamine.
Ms Murray said squatters moved in after she left, the weapon had nothing to do with her family, and she and her husband have never used or sold meth.