UPDATE: Police allege man started fire during stand-off

Police allege a 46-year-old man started the fire which tore through a Tamar Street unit complex this morning after arming himself with a baseball bat and glass and refusing to leave the property.

Police have confirmed officers were called to the Tamar Street address just after 9am following reports of a person damaging the property.

Officers were told the man was allegedly throwing items and damaging property inside the home.

Police say that as officers attempted to arrest him inside the property, he refused to leave and armed himself with a baseball bat and glass.

A perimeter was established around the property before the man allegedly started a fire inside.

Concerned nearby residents joined police keeping an eye on the scene

Officers then forced their way into the home and arrested the 46-year-old. He was taken to Ballina Police Station.

Two nearby residents were evacuated without injury.

Fire and Rescue NSW crews battled the intense blaze, which sent thick smoke across a large part of eastern Ballina as strong southerly winds carried the plume across town.

A crime scene has now been established and police investigations are continuing.

Several units in the four-unit complex are understood to have suffered significant damage, leaving residents facing the loss of their homes.

Local community fundraiser Mark Ross has launched an appeal to help an elderly man who lived in the front unit and has been displaced by the fire.

Anyone able to assist can contact Mark Ross on 0427 869 536.

FRIDAY UPDATE: Man accused over unit fire sent for mental health assessment

The 46-year-old man accused of starting the Tamar Street unit fire during a stand-off with police has faced court and been ordered to undergo a mental health assessment.

Seven News reported the man appeared in court today charged with four offences, including damaging property by fire.

No plea was entered and the court ordered he be taken to hospital for a mental health assessment.

Meanwhile, the extent of the damage to the four-unit complex is becoming clearer.

Community fundraiser Mark Ross said units two and three were severely damaged, while units one and four could also be affected.

Residents remained unable to return to their homes today, with Ross saying some were in their 80s and 90s and could be left with nowhere to go if the complex cannot be made habitable.

Ross, who has a caravan donated after the floods for people caught in emergencies, offered it to residents needing somewhere to stay.

The wider community has also rallied around those displaced by the fire, with offers of meals, clothing, gift cards and furniture.

It remains unclear when or if residents will be able to return to the complex.