Initiative strengthens government-Iwi partnership

Construction has started on a significant affordable housing project in Gisborne, reflecting the New Zealand government’s ongoing collaboration with Iwi to tackle housing shortages in key areas, according to Associate Housing Minister Tama Potaka (pictured above).
Partnership-driven housing solution
The groundbreaking event for the Te Mano o Hamo development, which took place in the Kaiti suburb, signifies the beginning of a plan to erect 48 new homes, featuring units ranging from one to four bedrooms.
This initiative is the result of a collaborative effort between Te Rūnanganui o Ngāti Porou and the Ministry of Housing and Urban Development, Te Tūapapa Kura Kāinga, with Te Rūnanganui o Ngāti Porou taking the lead on the project alongside ICONIQ Group, which will utilise local tradespeople for the construction.
Addressing critical housing needs
“Gisborne has suffered from housing underdevelopment and a lack of supply, coupled with damage from severe weather events,” Potaka said.
“There were 487 households on the Housing Register in Gisborne in November 2024 – this equates to the third highest rate of households per 10,000 people throughout the country’s districts.”
He highlighted the project’s importance in alleviating the housing crisis.
“This partnership will help address the housing shortage and is a great example of how the government can work with Iwi to deliver real results for whānau,” Potaka said.
Widespread impact and future goals
The Kaiti initiative is part of a broader strategy involving 12 projects supported by $82 million in government grants announced in November for developing 198 affordable rental units in priority areas across New Zealand, including Northland, East Coast, and Hawkes Bay.
The Kaiti project alone received about $16.6 million in grant funding and aims to complete all homes by August 2026, with rents capped at 80% of market rates.
Potaka reiterated the government’s dedication to enhancing housing affordability.
“The government is deeply committed to making housing more affordable for all New Zealanders together with addressing the housing challenges faced by whānau Māori,” he said. “This development is just one part of the overall picture of how we are trying to increase the availability of affordable housing.”
Additionally, these developments are integral to the government’s broader goal of reducing the number of people in emergency housing by 75% by 2030, marking significant progress in New Zealand’s housing policy.
Read the government media release here.