The first two of 10 relocatable houses earmarked for Eastern Bay of Plenty's displaced flood victims have been lowered onto their foundations.

Last Friday Whakatane mayor Tony Bonne and East Coast MP Anne Tolley were at the Whakatane Holiday Park to see the portacom homes installed.

The "Temporary Housing Park" was announced in May after April's flood and is being developed at a cost of $1.6 million. The Whakatane District Council is investing $900,000 to buy the 10 units and the Ministry of Business, Innovation and Employment (MBIE) will contribute $700,000 to cover infrastructure and relocation costs.

"It's really exciting to finally see the first two homes on site," Mr Bonne. "We are a little behind schedule due to demand for these portacom buildings."


He said he had been impressed with the two-bedroom relocatable homes that were built to be 20 per cent warmer than most Kiwi houses.

"I think people will be really surprised when they take a look inside."

Mr Bonne said MBIE had a list of people waiting to move into the relocatable homes as soon as they became available.

"It is temporary housing until people are able to move back into their own homes and for us [council] that remains our priority."

The 10 homes, six are two-bedroom and four are one-bedroom units, will arrive at a rate of two a week through until mid-September.

The temporary housing will be available for flood-affected residents for up to a year and will then be used for tourist accommodation.