The Tauranga City Council have announced they will be compensating homeowners who were forced out of their new homes in the Bella Vista development by purchasing the unsafe properties off them.

In a letter outlining the decision, the council says it will now enter into negotiations over payment with the homeowners.

The move comes after a number of the homeowners gave emotional submissions to the council about their situations today.

Sarsha Tyrrell described being forced to return to work after her marriage broke up, raising her two-year-old daughter alone and paying both mortgage and rent since she was evacuated from her Bella Vista home in March.

She described the last three months as "exhausting" after moving from room to room in motels.

She says her daughter was affected by dampness at her newly built house, developing respiratory issues. Now the two-year-old is sick and anxious because of the months of upheaval and has been to several doctor and hospital visits.

"Three months ago Lila was a content settled and charming toddler, now she wakes most nights crying and unsettled," Ms Tyrrel said.

In March a large number of families were evacuated amid concerns an approaching cyclone could do serious damage to their properties. They were not allowed to return after Tauranga City Council assessments revealed structural issues with the homes.

Degen Prodger described the following weeks in and out of motels as a "nightmare".

"My daughter would cry saying she wanted to go home. It's wrecked us physically and emotionally. My family has been sick all the time," Mr Prodger said.