Omokoroa will be "the first cab off the rank", for the Western Bay district under the Government's Housing Accord Strategy - with plans for 200 new homes with price tags that start below $350,000.
Western Bay of Plenty District Council strategic planner Blaise Williams said it was in confidential negotiations with a developer but expected they would enter into a heads of agreement within days.
The 17ha special housing site located near Omokoroa Rd and on the southern side of the railway line was predominantly held in three titles with two owned by the council, he said.
About 200 houses would be built on compact sections in the initial stages. Under the special housing legislation twenty-five per cent would be priced under $350,000, twenty-five per cent from $350,000 to $400,000 and the remainder more than $400,000.
The houses would be relatively small but have aesthetic appeal enhanced by landscaping. "We are aiming to provide for a niche market which will allow people that would otherwise not be able to afford to live in Omokoroa to get an opportunity to get into the peninsula."