It would then be on trusts and organisations like Habitat for Humanity to build 20 per cent of affordable housing within that area.
The wording of the amendment as first crafted brought concern to Cr Gary Mallet, who said it would prevent other housing from being built if that 20 per cent was not reached.
Cr Dave MacPherson attempted to come Cr Bunting's rescue with the structuring of the amendment, saying that it should be changed to "that the council approves that 20 per cent of total SHA stock over each year bet set aside for co-housing initiatives."
"I think there is a problem, and Auckland has clearly shown this problem, that SHAs are not delivering the expected number of affordable housing," Cr MacPherson said.
Mayor Andrew King was supportive of the intent of Cr Bunting's amendment but said he could not back it.
"The wider that we can leave this policy open, this council gets to choose which applications are in and which applications we reject," said Mr King.
"We've got to be careful we don't stall the market with an amendment like this."
"It could distort our decisions later on."
Cr Geoff Taylor had sympathy for Cr Bunting but could not support the amendment to approve 20 per cent of SHA stock for co-housing initiative.
"We're muddying the water again I believe if we over complicate it."
"I support the stripped back version as I believe it'll get the job done."
The amendment failed to pass with a vote of seven against and three for - Dave
MacPherson, Siggi Henry and Mark Bunting voting in favour.
The council voted unanimously to approve the Special Housing Areas with a vote of 10-0.
Councillors Angela O'Leary, Paula Southgate and Phillip Yeung were absent.
In September, land owners will be able to present proposals for their land to become a Special Housing Area, the proposals will then be assessed by the council.