Lismore still recovering two years after record flood

Two years since unprecedented floods devastated the NSW Northern Rivers, finding a place to live for those rendered homeless remains the biggest challenge for traumatised communities.

Five people were killed and thousands of homes damaged or destroyed when heavy rain raised the Wilsons River to a record high of 14.4m on February 28, 2022.

In parts of Lismore the floodwaters peaked at more than 10m, covering the roofs of homes and reaching the upper storeys of businesses in the town centre.

Ahead of the flood peak's two-year anniversary on Wednesday, access to stable and affordable housing remain the region's greatest challenge.

About 4000 people lost their homes in the floods and up to 1200 are still living in emergency accommodation or temporary "pod" villages.

Some residents have returned to live in partially repaired homes due to a lack of viable alternatives, while others have left the region altogether.

Lismore resident Pam McLean, 70, still lives in temporary accommodation after the floods destroyed the rental she occupied for 11 years.

"It was just an old fibro house, but I called it home," she told AAP.

An auditor-general report published on Thursday found the NSW government reacted quickly to the unprecedented flooding but ultimately could not meet demand for housing.

The scathing report found the state was not as well prepared as it could have been for the use of temporary housing after that disaster, and had failed to heed lessons from the 2019-20 bushfires.

Multiple non-profit services have taken up the task of assisting residents to navigate access to disaster support and temporary accommodation.

Uniting NSW.ACT case worker Dash Boyce said support-service staff, many of whom were personally affected by the floods, often stepped into the role of "accidental counsellor".

"Trauma-informed support is about helping people navigate the systems that at times can be complex (and) whilst we're not clinicians, that has sometimes been our role," he said.

A NSW parliamentary inquiry examining access to mental healthcare support has heard regional communities traumatised by repeat natural disasters are facing a shortage of qualified workers, while existing staff face burnout.

Support workers in areas devastated by natural disasters are experiencing trauma of their own as they try to help others with limited resources, a hearing in Lismore was told.

"Within the community sector, we were under-serviced and had inadequate support around mental health and homelessness even before the floods," Mr Boyce said.

To mark the two-year anniversary of the floods, Resilient Lismore has organised a gathering by the river for the community to reflect on the challenges it has faced and the journey still to come.

Mr Boyce said the anniversary would also be an opportunity for locals to acknowledge their own strength in the face of disaster.

"Yes there was devastation, but there is also something to celebrate when it comes to the resilience of the community," he said.

"But the elephant in the room is housing, we need that to be fully addressed with a clear pathway to the answer.

"People can display resilience for a long time before they start to break down and I don't feel like we're in the clear yet, we're midway through the journey to recovery."

Ms McLean predicted it would take closer to five years for the town to recover from the disaster.

"The recovery will eventually happen, but another flood would wipe Lismore off the map," she said.

"Something has to be done to stop this water from coming, because people can't go through this again."

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