Social housing provider Accessible Properties is to get $3.5 million from the Government to build 20 homes in Wellington, Tauranga and Hamilton.
Accessible Properties has been a major recipient of funding in the latest round of grants from the Social Housing Fund, receiving $8.9 million.
Housing Minister Nick Smith says the community social housing sector provides good quality, low cost housing and he is keen for it to grow.
Dr Smith says the Social Housing Reform Bill, expected to be passed into law by Christmas, will also help to grow the sector, by allowing providers access to income-related rent subsidies for new tenants.