Construction has started on 41 soon-to-be state-owned houses in Pāpāmoa that will give "warm, dry homes for whānau who are most in need".
And due to Tauranga's "terrible" housing crisis, at least two neighbours are supportive of the plan.
In a letter to local residents, Kāinga Ora confirmed its agreement to purchase the houses from developer Gemscott, with Kāinga Ora taking ownership of the development once the homes are finished.
The new homes will be built at 171 Doncaster Drive in Pāpāmoa, near the college.
Twenty-two of the homes will be for people needing a permanent home, and 19 will be for supported (transitional) housing where people receive wraparound support and are helped in their efforts to find a permanent place to live, the letter said.
"This development will mean warm, dry homes for whānau most in need."
During the next 18 months, Gemscott will be building the houses in two stages. The development will also include a shared outdoor space in the northern centre and two entrances off Doncaster Drive, the letter said.
Under stage one, 13 homes will be completed by the end of 2022. This will include two three-bedroom, eight four-bedroom and three five-bedroom houses.
Under stage two, 28 homes will be completed by the end of 2023. This will include 17 two-bedroom terraces, four four-bedroom and seven five-bedroom houses.
The new homes would be fully insulated with carpets, curtains, double glazing and Homestar 6 ratings for additional sustainability and efficiency. Two carparks will be provided for each larger home and one carpark for smaller homes.
Kāinga Ora would match these homes to individuals and families on the Ministry of Social Development's housing register with the highest priority for a home of that size and in that location.
Pāpāmoa resident Joe Burke has been renting in the area for the past four years. He told the Bay of Plenty Times he was supportive of the new development and did not have any concerns about it.
"People have got to live somewhere ... poor people and rich people have got to find homes."
Asked about the housing crisis, Burke said house prices were "too high".
A resident in the area, who did not want to be named, said the housing crisis was "terrible".
"If they've got to go somewhere ... [there are] plenty of schools so it's not as if they're stuck in the middle of nowhere. They're pretty central to the shopping centres - it's all walking distance.
"As long as there are no loud parties, I really don't care."
Pāpāmoa Residents and Ratepayers Association chairman Philip Brown said there was a need for all types of rental housing in New Zealand, particularly for working families.
"Kāinga Ora has decided to build in an existing community and we expect that Kāinga Ora and their new tenants will respect and embrace the local community and add value to the community."
Te Tuinga Whanau Support Services executive director Tommy Wilson said he was "excited" about the new development.
"It's only good news when there [are] more houses coming into the pool."
"I just hope that they [Kāinga Ora] turn their buying powers into the CBD or the local area of Tauranga where we can do the same thing because the focus for us is in our own backyard so Pāpāmoa is a little bit out of our reach.
"If it's a trend, I'm looking forward to seeing what Kāinga Ora produces and purchases on this side of the harbour bridge for the residents of Tauranga Moana."
Ministry of Social Development (MSD) Bay of Plenty regional commissioner Mike Bryant said it was not yet confirmed who would move into the Pāpāmoa properties but was happy construction was making progress.
"At any given time, there are many people looking for housing. Across government, there is a major programme of work under way aimed at increasing the supply of public housing and improving housing affordability and supply.
"Our role at MSD is to assess those in housing need, and refer housing applications to Kāinga Ora and other housing providers to help them match applications to available properties."
Pāpāmoa College acting principal Pere Durie was approached for comment.
In December 2017, the Government opened a temporary transitional housing village in Opal Drive in Pāpāmoa on 6500sq m of land leased from Tauranga City Council.
In February, nine out of the 19 homes were moved for a new pump station.
The land was temporarily leased by Tauranga City Council. The village's other 10 homes were on land with a longer-term lease and would remain on the site and tenanted as transitional housing until that lease was up.
The establishment of the village was controversial among neighbours at the time.