Police are often called to a Housing NZ home in what used to be a quiet Motueka street, residents say.

Kids are back playing in a troubled Motueka street, described as a "domestic war zone" after a problem tenant moved out.

For the past three years, residents on York St in Motueka had complained of loud parties into the early hours, abusive language towards children at the address, and verbal abuse to passers by from a Housing New Zealand tenant in the neighbourhood.

The matter came to a head at the end of September, when the street was the scene of a hit and run incident which put two people in hospital.

Virginia Woolf/Stuff Police investigate a crime scene on York Street, Motueka, after a hit and run incident at the end of September.

A York St resident, who did not want to be named, said the change in the neighbourhood after the tenant moved out had been "incredible".

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"It's amazing, the street is back to exactly what it was. The kids have come back out again, parents are letting their kids ride their bikes and scooters on the street.

"All of that had gone, because of this situation created by this one neighbour."

The resident said it felt like living in a "domestic war zone" and had been getting worse and worse.

A Housing New Zealand spokesperson said the tenant handed in notice and vacated the property on October 15, and was not currently a tenant of Housing New Zealand.

HNZ did not respond to questions regarding why the tenant had left the property.

The resident said neighbours had been informed following a street meeting with HNZ representatives, and were told the tenant had left because she felt unsafe after the hit and run incident.

They were told HNZ would have moved her anyway, and admitted she should have been moved sooner.

The resident said while there were many Housing New Zealand tenants in the neighbourhood, there had never been a problem on that scale before.

"We're surrounded by them and everyone's fine, they're great neighbours."

Neighbours had formally complained in March 2017, with 20 signing a petition and reporting the behaviour to police, HNZ and other social agencies.

With the house yet to be rented out to new tenants, there was even the possibility of bringing back a street party to the neighbourhood, with the support of HNZ.

"They used to have them in the old days around Christmas and New Year's Eve, it's been done before as a way of getting neighbours to know each other.

"We were thinking it would be good to have one when the new tenants move in."