Residents of a Manitoba First Nation who were forced out of their homes in 2011 after a devastating flood have returned to find that new houses are also uninhabitable.

The 37 prefabricated homes were purchased for families in the Peguis First Nation, which lies about 145 kilometres north of Winnipeg.

And now, the Band says that all 37 of the new homes need to be repaired.

A recent housing review found that the homes, which were moved to Manitoba from the U.S., had inadequate insulation and some of the plumbing wasn't up to code.

Additionally, vapour barriers, which help protect the homes from mould build-up, were not sealed properly.

Many of the residents of the community, who spent years staying in hotels and other accommodations, returned home disappointed.

All 10 of the Sutherlands currently live in a trailer, just metres from their brand new house.

The accommodations are tight: two of them sleep on a cot and another two others on a table bed.

The Sutherlands were one of the dozens of families who were forced to abandon their homes after the 2011 flood swamped the reserve. In total, they lived in six hotels and three rentals homes.

"They took us out of a mouldy home," said Chery Sutherland.

"We were evacuated for three years before we came back home (and) we moved home to a mouldy home."

The Sutherlands believe that money originally spent on the homes has been misused.

"They are not worth what they bought," said Albert Sutherland.

A document obtained by CTV News shows that one phase of the construction, which included 18 homes, cost nearly $6.5 million.

CTV News has contacted Aboriginal Affairs and Northern Development for further information about the price of the homes and how much money will be required to fix them, but it has not received a response.

The Band is working to repair the homes, but it could take months.

With a report from CTV’s Manitoba Bureau Chief Jill Macyshon