The Department of Communities and Justice said it had offered assistance to Dubbo mother Tiffany Gordon and her two children, despite her claims.
"Miss Gordon and her family have been offered ongoing temporary accommodation until alternative accommodation can be found," a spokesperson said in a statement.
"Housing NSW has offered the family this assistance numerous times, all offers have been declined."
Miss Gordon and her two young children are currently staying with family members after their house caught fire last month due to unknown circumstances, leaving the three of them without a home.
Miss Gordon said she was concerned about finding a new home for her and her children as she 'wasn't receiving any help' from Housing NSW.
The family were placed temporarily at a motel, but chose not to stay there.
"As the fire is subject to a police investigation, it would be inappropriate to comment further," the spokesperson said.