Almost two months after Attawapiskat First Nation leaders declared a state of emergency, the federal government has completed work on a healing lodge to house 25 families who have been living in tents and shacks.

In a statement released Saturday, Minister of Aboriginal and Northern Affairs John Duncan said the families would be able to live in the lodge until 22 modular homes arrive. The retrofit was completed Saturday.

The modular homes, which were built in Fredericton, N.B., have reached Moosonee, Ont. and will be trucked to the James Bay community of Attawapiskat as soon as the winter road freezes, which could be in about a month.

"In addition, work is already underway to repair the multi-family unit ATCO trailers which means that other residents will have a more comfortable place to live," Duncan said.

Attawapiskat declared an emergency in late October because 25 families were living in ramshackle housing with winter approaching. The Red Cross immediately flew in emergency supplies and later raised $300,000 from Canadians to help people in the remote community.

But Prime Minister Stephen Harper accused the band of mismanaging the $90 million transferred to the community over five years. He ordered a full audit and placed administration of the band's finances in the hands of a third-party manager -- a decision that angered band leaders and has sparked a legal fight.

With files from The Canadian Press