The 26-unit development, which is being built by Mount Maunganui company iLine Construction, will see 15 additional units and the replacement of the 11 original 40-year-old units.
Foundation site works have already been completed, including retaining walls and new fencing, stormwater mains have been installed and the new public path between Heron Crescent and Diggelmann Park is open.
The project is funded through the Better Off Fund and the Ministry of Housing and Urban Development’s Affordable Housing Fund, which will see council provide a mix of one and two-bedroom units that also cater for those with mobility issues - at no cost to ratepayers.
It is the second elder housing development council has built in Katikati, with tenants moving into the seven new units built at Beach Rd last year.
The 26 new units are expected to be completed and available by August 2025.
Elder housing in the Western Bay of Plenty
Once completed, there will be 85 council elder housing units within the district — 39 in Katikati, 34 in Te Puke and 12 at Waihī Beach.
To be eligible, you must be a New Zealand resident, 65 or older and/or qualify for Government superannuation.
Applicants must be able to demonstrate their total assets are worth $40,000 or less for a single person, and $50,000 or less for a couple. They must also be able to live independently.