Neighbours of the Hobsonville Air Base fear a drop in property values and rising crime if there are more state houses on the site than originally planned.
Since the Government decided to close the 170ha base six years ago, plans for its future had gone underground, said Massey community board
chairman, Andrew Good.
"But now the issue has surprisingly resurfaced - with plans well under way."
Of more concern, he said, was that Housing New Zealand had formed an offshoot, called the Hobsonville Land Co, to take on the development.
"Housing New Zealand appears to have taken control of the entire area and is using the company as a front."
Mr Good recalled earlier reassurances from Housing New Zealand that it sought only a quarter of a potential 3000 sites for state housing while the rest went to private developers.
"But the new company is going to run the whole show."
Mr Good said residents of Massey, Hobsonville and West Harbour pointed out other areas where Housing New Zealand started out with only a quarter of the sections and then surpassed its rental quota by managing privately owned homes.
"Hobsonville is the jewel in the crown of Auckland with its fantastic harbour views and it seems a crime to put a portion of it into state rental housing."
He said residents feared state housing would attract graffiti and crime and affect their property values.
"There is considerable resistance - in fact one survey conducted several years ago showed over 90 per cent of residents were opposed."
So far, the only people who knew what form the development would take were the mayors of Auckland's cities who were given a confidential briefing last month.
"We want Housing New Zealand to come and show residents their plans and to hear our concerns.
National MP for Helensville John Key said the plan to build 500 state houses on half-million-dollar sections was "economic vandalism".
He said there was a risk that private developers would not put their money into such a proposal.
"The Hobsonville development has the potential to become a ghetto if done wrong, and why take the risk when it's not necessary?"
Mr Key said he had pointed out much more suitable places for state houses.
Housing New Zealand spokesman Tom Bridgman said the agency's holdings had increased from 30ha to 110ha and it had always aimed to take control of the whole site's development with a master plan. But the site would include land set aside for schools, parks and the marine industry cluster.
As well as about 20 per cent needed for state housing of mixed densities, there would be other land for people on moderate incomes to build homes and for the valuable waterfront sites to go to private owners.
Mr Bridgman said planning was at a concept stage and had neither Government nor local authority approval.
The base is a key part of a Waitakere City Council bid to transform Hobsonville and move the area inside the metropolitan urban limits.
This move will be subject to public submissions and hearings under the Auckland Regional Council in November.
Waitakere City Council development chairman Penny Hulse said Housing New Zealand would need to seek a resource consent from it.
"We have a clear idea about the kind of development we want for the site."
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