Auckland Council has approved a deal for about 1500 affordable homes to be built on land it currently owns.
Councillors have this morning agreed to a joint venture with the Selwyn Foundation to run the council's portfolio of 1412 units for the elderly, in 62 villages.
The foundation will have a 51 per cent share in the venture to manage the units, add 40 homes and progressively replace others.
The redevelopment will, over time, create surplus land which will be available for affordable housing.
The first development will be the former Wilshire Village in Henderson where 40 units have already been demolished. These will be replaced and developer interest sought in building about 160 affordable homes.
A block of land in Godley Road, Green Bay, is also near the top of the list for possible housing.
The housing developments are likely to take at least a decade or more to roll out.
Two-part housing strategy
The joint venture for housing for the elderly will register to become a Community Housing Provider, and be eligible to receive government payments through the Income-Related Rent Subsidy scheme. It will operate the units on land that remains in council ownership but be leased out.
Potentially surplus land will be managed by the council's Panuku Development Auckland agency. The land would be sold to developers who would need to agree with the council agency on the nature of what would be built. Proceeds would help pay for upgrading or replacing the units for the elderly.
The new housing developments could involve a mix of homes for other community housing agencies, or for sale on the open market.
Panuku, and its predecessor Auckland Council Properties Limited, has previously been involved in helping individual affordable home developments occur on surplus council land which it has sold.
The council's governing body meeting is today expected to approve the two-pronged strategy.