Lower North Island tribe Ngati Apa says people may be discourgaged from building homes on papa kainga because the scheme doesn't allow them to own the land.
The tribe has received just over 70 hectares of land to develop tribal housing projects as part of its Treaty settlement.
Ngati Apa housing project manager Pahia Turia says the iwi has two papa kainga projects - at Ratana pa and in Kaitoke near Whanganui.
He says many iwi members have expressed an interest to return to live in a papa kainga setting, but there are some conditions which could stifle getting a house built.
Mr Turia says individual tribal members won't be able to own sections of land themselves; it will be based on a lease hold arrangement with Ngati Apa.