Works at Waingākau Village in Flaxmere will unlock 76 more lots and allow for up to 82 standalone homes.
Waingākau Village is a co-housing development set on 15.5 hectares of land on Flaxmere's western edge, and is aimed at making home ownership more accessible for whānau.
It is supported by Te Taiwhenua o Heretaunga and Hastings District Council.
Civil contractors Downer New Zealand Limited have been appointed to build roading infrastructure at the end of the month.
Works are expected to be completed by March 2022 and a Te Taiwhenua o Heretaunga (TToH) spokesperson said the original plans were for 52 conventional standalone homes, and new plans have taken this to 82 conventional homes and co-housing villages.
"The roading has allowed us to update our plan for front and back sections as well as our co-housing sections, which will be the final stage of the development."
TToH CEO George Reedy said Provincial Growth Fund infrastructure funding meant they could take another look at plans to see where changes could be made to bring more homes to the village.
Among other changes, a cul-de-sac will be created, allowing more homes on the site.
"This is a significant milestone in the journey towards building homes for our community."
Downer's work on adjacent council development on Tarbet St and their commitment to work development for Māori and Pasifika school leavers, leadership for Māori and strengthening leadership among wāhine were reasons they were chosen for the project.
TToH chairman Mike Paru said the works continue to develop aspirations for whānau access to warm, safe, dry and affordable homes.
Downer regional manager Darrin Davies said they look forward to a collaborative relationship to ensure they engage and deliver to the Flaxmere community, by offering employment opportunities and helping individuals start their leadership journey through the Downer Te Ara Whanake Māori Leadership Programme.