A new state housing development is set to begin in Hastings in a matter of months with 11 old homes being demolished for 40 new ones.
Housing company Kāinga Ora confirmed it will be building 40 new one- to four-bedroom homes replacing 11 old state homes on Kauri St and Kauri Pl in Hastings.
Programme director of Kāinga Ora Nick Seymour said it is planned to get construction under way by June or July.
"They will be a range of one- to two-storey stand-alone and duplex homes," he said. "Demolition of the existing homes will get under way in March, with construction starting in mid-2020."
Tenants are expected to move into the new warm and dry homes by early 2021.
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Seymour said the new homes are part of a four-year Regional Housing Programme set to take place around the country.
"We will deliver about 900 new, modern state homes in regional cities and towns across New Zealand," he said.
"This includes providing approximately 150 new homes in Hawke's Bay by June 2022."
Hastings Mayor Sandra Hazlehurst said Hastings is in the middle of a "major housing shortage" and is "desperately in need of healthy and affordable homes for our community.
"The lack of affordable housing in our community has been a challenge over the last 4-5 years due to a variety of factors," she said.
"From low interest rates to rent increases, the need to house 4500 seasonal workers every year, coupled with emergency, social and senior housing all being at capacity. We have to get our families out of the motel units being used for emergency housing and into their own homes."
Kāinga Ora has delivered 72 new state homes in and around Napier and Hastings in the past two years.
KiwiBuild properties in Maraenui are also gathering some momentum as 10 recently finished three-bedroom homes have received offers, with six now unconditional sales.
The six houses unconditional sales prices range between $380,000 to $395,000.
Seymour said the houses in Maraenui are part of more than 400 KiwiBuild homes sold nationwide, with a further 728 under construction as of December 31, 2019.
"Having a roof over your head is vital to people's wellbeing and providing enough homes in the right places that are accessible to everyone is one of our region's main priorities," Hazlehurst said.
"We look forward to seeing Kāinga Ora's newest development taking shape."