The impoverished First Nation of Attawapiskat has shot back at the federal government's offer to evacuate the community and bring in 15 new modular homes.

In a letter to Aboriginal Affairs Minister John Duncan, Attawapiskat's chief said that the 15 homes won't cut it, The Canadian Press reported.

Chief Theresa Spence also demanded that the government take the reserve out of third-party financial management -- a move that puts the community in financial limbo.

"My community will not consider third party managers nor pay for them out of our already depressed band support funding budget," Spence wrote in all capital letters.

She also suggested that Ottawa should stick with its plan for an independent audit of the $90 million it has sent to the band over the last five years.

She also took aim at politicians and the media over allegations the band has mismanaged its funds -- noting that the community has received between $9,000 and $12,00 per person in that time, not $50,000 as the government has said.

Ottawa ordered the band's finances be put under control of an outside manager at a cost of $1,300 a day, a move that sparked outrage among Aboriginal leaders and Opposition MPs.

The manager will continue to audit band finances until the end of June, meaning the total contract for accounting will cost the community $180,000.

Earlier, the federal government committed to send 15 modular trailers for residents, but didn't say who would pay the $1.2-million cost.

"The homes and the costs associated is not our immediate concern," Duncan said. "This is an emergency-management response. We will worry about who's paying for this afterwards."

The government's first concern is the health and safety of the community, he said. "We want to make sure they have safe, warm, dry shelter."

Duncan later said Ottawa is responsible for transfers to First Nations communities, so federal monies would be used to buy the trailers and upgrade current homes.

He said the government has been working around the clock with the community near James Bay, which had declared a state of emergency in October because of a housing shortage. Some residents are living in homes without insulation, while others live in tents.

Five other homes will be retrofitted, Duncan said.

As well, the government will provide wood-burning stoves and composting facilities.

The homes will be sent to the remote community of 1,800 when winter roads open, likely in late January, he said.

Duncan also extended the federal government's offer to evacuate some residents, or move them into a sportsplex or healing centre.

"Our government has prioritized the urgent health and safety needs of the residents of Attawapiskat," Duncan said.

But Spence gave Duncan's offer the cold shoulder in her letter: "I must consult with the families involved, however I think their preference has been to remain in the community."

NDP MP Charlie Angus said he's happy with the homes being provided by the federal government, but added Ottawa must stop punishing the community with third-party management.

"Our government is moving ahead with an action plan to address the urgent health and safety needs of the people of Attawapiskat," Duncan said. "We are hopeful that the chief and council will work with us, the third-party manager, and other partners to be part of the solution."

But Jane Dickson-Gilmore, a law professor at Carleton University, likens the offer of modular homes to "slapping a band-aid" on a patient with acute appendicitis, and questions Ottawa's allegations of financial mismanagement by the band.

"We've seen no evidence of this, we've seen no justification," for sending in a third-party management, she said during an appearance on CTV's Power Play. "What it looks like is the government took the easy way out and chose to blame the council … instead of the legacy of complete, stunning mismanagement at the federal level."

With files from Canadian Press