Long-time residents advocate Maxine Boag, whose Napier City Council ward of Nelson Park includes Maraenui, said she understood the homes will be priced about $385,000 each.
Hawke's Bay Regional Council member Paul Bailey, who lives in the area, said: "If it's a rent-to-buy situation then I might not have too much of a problem with it. But if it's homes that the people cannot afford it is likely that the homes will soon be owned by investors."
Housing New Zealand released a statement to Hawke's Bay Today essentially repeating the detail in the notice to residents.
It had not commented further on cost and purchase options, confounding Bailey, who said: "It's always good that housing stock is increasing, one way or another. You'd think if they think this is going to be a good news story they'd be singing about it from the rooftops."
Housing New Zealand says it is working with the Napier City Council to advance the Activate Maraenui concept plan which was presented to the community at a meeting last year.
At that meeting there were indicated plans to build some homes on Bledisloe Rd, opposite the shopping centre and between the intersections with Hillary Cr and Geddis Ave.
No announcements have yet been made confirming anything for that site.
