"What that means is people with a physical, mental or any other disability that can't afford normal rent can apply to get a rental top-up. So people who are on benefits are capped at something like 30 per cent of their benefit."
The organisation was already the most successful applicant for the Government's Social Housing Fund grants that had enabled a programme of new-build construction of social housing units for affordable rental by people with social support needs.
By the end of 2015, 200 homes would have been built with a market value of $70 million in Auckland, Christchurch, Wellington, Hamilton and Tauranga.
Earlier this week the Salvation Army said it would not take part in the Government's plan to sell up to 8000 state houses to community providers after research showed it would stretch its resources too far.
However, it would consider joining forces with other providers to buy some of the state houses, but it would not take them on alone.
Major Campbell Roberts, founder and director of the Salvation Army's social policy research and parliamentary affairs unit, said the charity was a reluctant role model for the policy.
But Mr Adams said it stood ready to get into negotiations with the Government and could provide the wrap-around services that people in social housing required. It would fund the bid by using its existing property portfolio that was valued at $250 million, money donated primarily by Kiwis over the last 70 years, as equity.
Housing New Zealand was likely to sell properties in Tauranga, he said.
"I am donkey deep in this thing. I am one of these guys when I get the bit between my teeth I get things done around this place and there is plenty to do especially in this city.
"In Tauranga's case it will benefit the people that need a helping hand and support with housing."
Te Tuinga Whanau Support Services executive director Tommy Wilson appealed to those young mothers that have nowhere to live, to "hang on help is on the way".
If the Government put state houses in Merivale on the market "we are putting our hand up to say don't sell them all, give six to us".
Maori Development Minister Te Ururoa Flavell visited its office yesterday to support the initiative that would provide temporary housing.
"They are mainly mothers with kids whose husbands have gone to jail or gone back to the gangs. They are really good mothers that are trying hard to keep their family under one roof.
"It would be an oasis for them to get on their feet again and we will do everything in our pastoral care to support them."
The trust would pull every string it could to buy the houses and it was just a matter of joining people together to help them, Mr Wilson said.
Former Merivale Community Centre manager Graham Bidois Cameron said his concern was the complexity of the social issues organisations would have to deal with if the Salvation Army thought the model was not workable for them.
A Minister of Finance spokesman said the Government intended to sell 1000 to 2000 Housing New Zealand properties to registered community housing providers, "where this will improve services for tenants".
"The Government is only at the early stages of this process. It has held six public meetings around the country and the feedback from the community sector has been positive, inquisitive and, at times challenging.
"The next step is to undertake more detailed consultation in particular regions where sales may occur in the first instance."
The Government had not decided which regions, although the intention was that areas selected would be where demand for social housing was stable.
No negotiations had taken place with any organisations over the sale of social houses.