It said the homes will be a mixture of new builds and newly acquired rental properties.
Rotorua MP Todd McClay said he would work with Rotorua Lakes Council on section availability and consent times to get the new build homes finished as quickly as possible.
By making this "statement of intention" the Government says its showing it's taking the Rotorua housing crisis seriously.
But am I alone in wondering where these 117 homes (37 by the end of this year alone) are going to come from?
For a city our size, with a shortage of sections and a booming property market, that's an awful lot of houses to come up with.
So the real work will start now, in turning the some may say ambitious plan into reality.
By the end of this year 37 more families could have a proper home. Another 80 over the coming few years.
This plan would change lives. So, whether or not it seems ambitious, it simply must become reality, whatever it takes.