"Unfortunately for everybody, there will still be a 90-day notice coming when that development goes ahead for the people who live in those houses," she told Ms Rauti and supporters.
Ms Rauti's house is among 156 current and former state houses due to be replaced by at least 260 new homes, including 78 that will be bought back by Housing NZ.
Ms Rauti, a former chef who has lived in her house for 20 years, tabled a letter from Housing NZ stating that at a meeting last month she was "invited to complete a business initiated transfer form (BIT)" and "received an offer to move to another home within Tamaki, albeit that the address was never disclosed".
She said she would now take time to reassess how to respond.
Murdoch Dryden, a director of the Creating Communities consortium that is developing the area, said Ms Rauti's stand was a factor in the decision to leave her area until later.
"The fact that Niki has caused a bit of a ruckus hasn't meant that we have been hurrying to get in there. By the same token, we don't need to get in there and there are some good arguments not to rush it."
He said rising property values meant there might soon be a market for higher-density terrace housing in the area.
So far the consortium has sold 34 homes, including 16 to Housing New Zealand.
Mr Dryden said he hoped to complete the project within the next two and a half to three and a half years.
