Housing New Zealand could be out of cash by February, leaving it unable to either maintain houses, or build new ones.

In documents obtained by Labour, the organisation warns Finance Minister Bill English it needs a new funding model.

Labour's housing spokesman Phil Twyford said the Government has run the organisation into the ground by asset stripping it.

"Bill English the Finance Minister has driven a $20 billion government agency to the brink of insolvency by pure mismanagement."

However, Bill English - who is also Housing New Zealand Minister - is adamant it doesn’t mean the corporation is going broke.

"There is no question about the viability of Housing New Zealand."

"Just look at the annual accounts, it's not going broke, it's in a very sound financial position."

Mr English said the Treasury documents had apparently been "misunderstood".

"Housing New Zealand has assets worth $20 billion, there's no way it's going broke," he told reporters.

"We own it - it relies on the government for its cash."

He signalled the Government is likely to provide further funding to Housing New Zealand for its future capital works.

Additional reporting from NZ Newswire