The Government will redevelop a block of "slum" state housing flats in central Auckland, building 280 units for the city's most vulnerable residents.
Housing Minister Phil Twyford confirmed the redevelopment would take place, finishing by the end of 2021, replacing the 87 flats on the current site.
Twyford said this morning that the Government and Housing New Zealand (HNZ) would take a "hands on approach" to solving the housing problem in New Zealand.
Read More: 'Slum' flats at 139 Greys Ave to be demolished
"Supported living is an internationally proven way to house and support chronically homeless people or those who have a range of complex needs."
"It's about providing a warm dry secure over people's heads when they need it," he said.
Up to 80 flats in the new development will be specifically allocated to Auckland's most vulnerable residents.
The remaining 200 will be a mix of state housing and rentals, designed for key service workers in the city centre.
The major redevelopment will take several years to complete, with the resource consent planned to be filed in August.
Tenant relocation will take place from now until February next year and the estimated time for demolition to start is early in 2019.
Construction is estimated to get under way mid-2019 before it is completed in 2021.
The Auckland City Mission's new Mission HomeGround redevelopment will also get under way this year, with work starting in October.
The Mission's Te Whare Manaaki Wāhine women's shelter is being used while work gets under way, said Helen Robinson, general manager of Social Services.
With one building empty as they prepare for construction on the site, the mission is utilising a 10-bed night shelter for women.
"Te Whare Manaaki Wāhine, which means 'house of hospitality for women', will on a night-by-night basis provide food, a warm bed, a shower, laundry facilities, and support services where appropriate.
"Because of this opportunity, there will be 10 less vulnerable women sleeping on the streets each night this winter," Robinson said.
HNZ chief executive Andrew McKenzie says health and support services will be located on-site and will provide better support to the community.
"It will be a modern, safe and sustainable development, close to central city amenities.
"Not only will it provide more housing and increase accessibility for our customers, but the support and services they need on site to help them live well in their homes and communities."