Maintenance of public housing on prime land around Sydney Harbour is being deliberately neglected to force residents out, the NSW opposition claims.
Opposition housing spokeswoman Sophie Cotsis says she heard at a community forum on Monday night shocking stories about the living conditions of elderly residents at Millers Point, Dawes Point and The Rocks.
She said the government was avoiding maintaining the properties to force residents to leave the heritage-listed properties at the southern foot of the Harbour bridge so they can be sold off.
About a third of the 100 public housing residents at the forum had leaking roofs, Ms Cotsis said.
And one lady complained of sewerage regularly leaking into her laundry.
"It's eviction by lack of maintenance," Ms Cotsis said on Tuesday.
The government has indicated it needs the land for its billion dollar Barangaroo development, Ms Cotsis said.
"It's a cash grab," she told AAP.
"This is nothing to do with Barangaroo."
Finance Minister Greg Pearce in October confirmed 250 heritage-listed public housing properties around Millers Point, Dawes Point and The Rocks had been identified for sale, but local residents hadn't heard anything since, Ms Cotsis said.
Community anger at the meeting was "red hot", and Labor and unions would fight any sale of public housing.
In 2008, the Labor government sold 99-year leases on 16 vacant houses, with many going for more than $1 million.
Comment is being sought from the government.