Four more social housing properties will be built in Tauranga.
Housing Minister Dr Nick Smith announced a further $3.5 million of funding for community social housing provider Accessible Properties to build a total 20 more homes in Wellington, Tauranga and Hamilton.
"The new funding will allow Accessible Properties to build a further 12 homes in Wellington and four each in Tauranga and Hamilton.
"The Government is keen to grow the community social housing sector as we recognise their ability to provide a good quality, low-cost housing service, as well as providing access to comprehensive support services for their tenants."
Dr Smith said the Social Housing Reform Bill, expected to be passed into law by Christmas, would also help to kick-start growth in the sector.
"The real game changer will allow community social housing providers to access the income related rent subsidy for new tenants.
"This is significant as up until now only Housing New Zealand has been able to access the subsidy."