It is a contestable fund of at least $1 billion and was launched on 30 June 2021.
Woods said key projects will include works such as extensive stormwater management in both Rotorua and Napier, a State Highway 2 intersection in Ōmokoroa, and a local link road and cycleway in Kaikōura.
"Upgrading water supply and roading in other projects will also deliver greater housing capacity."
She said it also ensured to deliver funding to developments in areas of the country with some of the greatest need of additional supply.
Homes built will range from elderly housing, papakāinga, public, affordable and market housing.
"The only way we are going to solve the housing crisis is to build more houses."
Woods said the Government was making the most investment since 1970 in land, housing and infrastructure like pipes and roads to enable new housing.
"There is no silver bullet to solve the housing crisis but investments like this will make a difference."
Twenty-eight more projects were undergoing due diligence and negotiations which were expected to conclude in coming months.
There had been enormous interest from regions wanting to build more housing but who needed funding support for it to be viable.
"We know a massive piece of the missing puzzle in the housing crisis we inherited is infrastructure; there simply hasn't been enough investment in getting land build-ready."
Rotorua would receive the majority of the funding, with almost $85 million to fund stormwater solutions. The Western Bay of Plenty's Ōmokoroa will receive $38.4m
Rotorua Lakes Council expected this infrastructure to enable over 3000 dwellings.
The city's mayor Steve Chadwick said the announcement was huge.
"This funding will enable us to accelerate this programme of work and reduce the timeframe for completion from thirty years to seven years."
Another $38.4m will fund a State highway 2 intersection upgrade in Western Bay of Plenty to provide safe access to the Ōmokoroa peninsula and cater for the next 15 years of anticipated growth for the town.
Western Bay of Plenty mayor Garry Webber said it would enable up to 2500 homes, with a mix of standalone homes, affordable homes and medium-density housing.
More than 1000 homes were expected to be enabled in Ōtaki in ten years from about $29.32m of the funding allocated. This was to upgrade water supply and roading.
Kāpiti Coast District mayor K Gurunathan said Ōtaki had the highest level of housing need in the Kāpiti Coast with the greatest affordability pressures on residents.
"Only 20 per cent of renters can affordably pay the median market rent, with only 2 per cent able to buy a dwelling at the median market sale price."
He said solutions must lie in partnerships and it had worked with iwi partners, particularly Ngā Hapū o Ōtaki.
Napier's Maraenui will receive $12.4m for flood management work which the Napier City Council believed will provide network capacity for an additional 400 new homes, including public and affordable.
Napier City Council chief executive Dr Steph Rotarangi said the community's wellbeing will be enhanced by improving its housing stock.
The only South Island centre to receive funding was Kaikōura, where elderly housing was the focus.
The district will receive $7.8m from the Infrastructure Acceleration Fund for projects expected to enable about 400 houses across two different sites – Vicarage Views, a new subdivision situated within the Kaikōura urban area, and Ocean Ridge an existing subdivision to the west of the town accessed by State Highway 1.
Kaikōura District Council mayor Craig Mackle said it was a great result.
"We have a critical gap in modern, low to medium income housing and elderly housing units that we need to urgently address."
The Taruheru catchment area in Gisborne will see a $4.2m IAF investment in key water supply, stormwater and roading upgrades.
Gisborne District Council expected it will enable public, affordable and market housing, as well as a Toitū Tairāwhiti Housing site for mana whenua housing and a wellness centre.
Gisborne District Council chief executive Nedine Thatcher Swann said it would enable 450 new homes over ten years and make it possible for developments on the eastern fringe of the city be completes much earlier than planned.
Six housing developments in Ferndale, New Plymouth, will receive about $1.8million for investment in upgrades to the water supply and transport options.
The New Plymouth District Council believed it will allow for up to 300 new homes over the long-term, with multi-modal transport options.
Woods also announced that a review to modernise the Building Consent system is underway, with the public being invited to have their say.
"The current building consent system was established in 1991 when many buildings new buildings were mostly detached, single-storey, timber-framed buildings."
A lot has changed since then, she said, and the system needed to keep up.
A better system will help transform the housing market, unlock productivity growth, stimulate urban development where it is needed, and make homes more affordable for all, she said.
"We also want to provide assurance to building owners and users that building work will be done right the first time, and ensure that buildings are well-made, healthy, durable and safe.
The review will not revisit the current joint and several liability rule but will examine "how we manage and allocate risk within the building system".
Submissions close on September 04 and more information can be found on the Ministry of Business, Innovation and Employment website.
