MORE than 100 people took to the streets of Murwillumbah on Saturday, calling for urgent action to provide more affordable housing in the Tweed.

The rally, organised by community activist Carmen Stewart in conjunction with the Family Centre, came as hundreds of people remain without homes following the devastating flood of March 30 and 31, exacerbating the already dire housing situation of the area.

The problem was made worse by news the owners of Greenhills Caravan Park at South Murwillumbah, which was home to 100 people, have been knocked back by their insurers and the park is unlikely to reopen.

The rally went ahead, despite the NSW Government on the eve of the protest announcing a $12 million boost to improve social and affordable housing in the Northern Rivers, including Lismore and Tweed.

Ms Stewart acknowledged the funding but said more needed to be done.

"This is a great start ... but dare I say we want more and we want to know where that $12 million is going and how much of that is specifically going to Murwillumbah and the villages,” Ms Stewart said.

"We want the government to lead the solution for crisis accommodation.”

Tweed Mayor Katie Milne, a long-time advocate of the homeless, led the march and later described the situation as "devastating”.

"I know it has been an absolute nightmare for a lot of you, and it is probably getting worse as the mould creeps up the walls and the structural damage and rot sets in,” Cr Milne told the crowd.

"We heard about the 15 people at the Chinderah parks today, that is just expanding the devastation that has happened to our community, not only to our business community but to our residential community and to all the jobs that are flowing on from the losses of those businesses.”

Cr Milne said the shire's housing affordability crisis had been around "for years and years and years” yet "nothing has been done in a structural way to change things”.

"It is something I have been advocating for for eight years, since I got on council,” she said.

"But honestly, it is a Department of Housing issue - they are the ones who really need to step up to the mark and take responsibility for this.”

Cr Milne said a total of 1421 adults and 415 children had presented at the Flood Recovery Centre in Murwillumbah for help, with more expected to make contact.

"That is nearly 2000 people who are seeking help,” she said.

"We also know there are a lot of people who haven't actually got to the recovery centre yet and there are a lot of people who are being helped by friends and family.

"I think those figures are probably a significant under-estimation but even so, 2000 people of our community is huge.”