Tarlene, who did not want her surname used, said for the health of her three daughters, she wanted out of the Northeast Valley villa as soon as possible, and with financial help to do so.
"I'm quite peeved about it. We're living in this house, which isn't good for the children, and we're stuck."
Tarlene (29), her partner Brett Cook (24), another adult and the three girls moved into the Otago Regional Council-owned house in March, signing a one-year lease.
This week, they were told the land beneath the house, previously the site of a wool scour, had lead levels between two and almost four times the safe limit for residential use.
Property management company Harveys Dunedin, which is contracted to look after the 11 residential properties owned by the council, has admitted the tenancy agreement the family signed did not include a clause informing them the site was contaminated.
Tarlene said the family would never have rented the property if they had been told there could be risks to the children's health.
The Ministry of Health says even small amounts of lead can cause serious health problems, with children under 6 most at risk.
All three girls had suffered recurring illnesses since moving to the property, with Mr Cook describing 1-year-old Azariah as "constantly ill".
Tarlene said she had made an appointment for Azariah to have a blood test today to determine whether she had elevated lead levels in her system.
Asked what would happen if the tests showed elevated levels, Tarlene said: "This thing will escalate."
Regional council support services manager Gerard Collings visited the family on Wednesday and told them they would not be penalised if they broke their lease and moved out.
He also apologised to the family because they were not told about the contamination.
Tarlene said the family was "still in shock" during the meeting and did not tell Mr Collings they wanted financial assistance to move.
She said she was left with the impression Mr Collings was trying to play down the seriousness of lead contamination.
But after doing more research into the potential effects of lead poisoning, they had decided they should not stay.
Tarlene said it was fair that either the regional council or Harveys, or both, find them an alternative rental property and help with moving costs.
"It's not an easy thing to pack up a family with three kids and a cat and a dog and move . . . We've got nowhere else to go. We don't know anyone here [in Dunedin]."
Neither the council nor Harveys had offered the family anything, she said.
"Nobody is . . . accepting responsibility for what has happened to us."
Mr Collings said "it was news to him" the family wanted compensation.
He said he would contact the family again today, but said any discussions about the family moving out or receiving compensation would be between the council and the family.
He had "certainly not" downplayed the effect of lead contamination, and had given the family figures and information.
It was "unfortunate" the family was in the position it was.
He said he understood the family felt let down over not being given the opportunity to make an informed decision about renting the property: "If I was them, I would feel the same."
Harveys' principal Bruce Robinson declined to comment last night.
