The ACT Government has given its strongest indication yet that hundreds of Canberra homes that still contain remnant asbestos fibres will need to be demolished.
More than 1,000 Canberra homeowners had loose-fill asbestos pumped into their roof spaces in the 1960s and 70s by the Mr Fluffy company.
A Commonwealth-funded clean up program in the 1980s and 90s failed to remove all the potentially deadly asbestos fibres.
Asbestos assessors have recommended 27 families move out of their homes after fibres were found in living areas, wardrobes and heating systems.
Chief Minister Katy Gallagher said the ACT's Asbestos Taskforce would issue advice for homeowners in the coming weeks.
"The advice that I'm getting from my experts at the moment is that it is looking like demolition will be what is recommended," she said.
Ms Gallagher said a final decision has not been taken, and it was too early to say who would pay for the houses to be demolished and how the program would be managed.
Displaced ACT homeowners are eligible for emergency assistance to cover accommodation, as well as clothing and emergency remediation.
The Chief Minister told the Legislative Assembly that emergency assistance of $140,000 has already been distributed.
"I really do hope that this assistance is providing these families with financial support during this time of financial hardship," she said.
Ms Gallagher expected the amount of money paid out in emergency assistance to continue to climb as more claims were made.
The first former ACT Mr Fluffy home was demolished under strict conditions at the owners expense almost two weeks ago.
The homeowners said they needed to move on with their lives after being forced to move out into temporary accomodation when asbestos fibres were found.