Chief Minister Katy Gallagher sheds tears during Mr Fluffy buyback scheme address

ACT Chief Minister Katy Gallagher has shed tears in the Legislative Assembly while delivering an update on the $1 billion Mr Fluffy buyback and demolition scheme.

This week the ACT Government agreed to accept a concessional loan of $1 billion from the Commonwealth to help pay for the demolition of the 1,021 properties affected by potentially deadly loose-fill asbestos.

But the decision to demolish all of the homes has been a difficult moment for Ms Gallagher's Government.

On Thursday as she updated the ACT Legislative Assembly on the buyback and demolition scheme, the Chief Minister showed some of the strain, shedding tears and pausing to wipe her eyes during the address.

Ms Gallagher told the assembly she could not let the shadow of Mr Fluffy hang over the ACT any longer.

"1,021 houses is a big call, but I cannot see any other way through this. We cannot let this legacy continue, it has plagued this city for more than half of Canberra's history. It must end and it will with the buyback scheme being put in place this week," she said.

But it was the stories of the families that live in the homes that were the focus on Thursday.

All have been combined into a group impact statement, which was tabled in the Legislative Assembly today by the Chief Minister.

Many accounts speak of the social isolation and guilt that has come with living in a Mr Fluffy home.

"I am confused and anxious about what the future holds ... I feel very distressed most of the time and there is never a day that goes by where I do not cry," one statement said.

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Chief Minister Katy Gallagher sheds tears during Mr Fluffy buyback scheme address