Napier MP Stuart Nash said the move was "fantastic" news.
"Jacinda Ardern did come here to Maraenui during the election campaign and said if Labour won, then we would build more state houses in Hawke's Bay. So, this is Phil [Twyford] coming back and delivering on an election promise."
Nationwide, 6400 additional public houses would be built, 3350 of those in Auckland.
However, 330 of those would be built in the East Coast region, which includes Hawke's Bay and Gisborne.
"The regions need public housing as well, and one of the things in Opposition that we were sharply critical of was the Government selling off and running down Housing New Zealand," Twyford added.
"We're making a great start in East Coast with concrete plans for 210 more public housing places.
"On top of this, the Ministry of Social Development will be partnering with community housing providers, developers, Housing New Zealand, councils and others to build about 120 additional homes.
"In the East Coast, there are currently 4046 public housing places, giving families and individuals warm, dry, and safe homes, for as long as they need it."
Ikaroa-Rawhiti MP Meka Whaitiri said 90 per cent of inquiries to her electoral offices were housing related.
"So, this is huge for us."
At present, the public housing stock levels in the East Coast region accounts for 4046 places, with MSD recording 3979 public housing tenancies in place.
Earlier this year the Government announced plans to build 49 state homes in Napier and Hastings, and MSD Hawke's Bay area manager Andrew Cairns said some of those had already been built and tenanted.
"We are probably two-thirds of the way through that build, with the remaining third due in the next two months.
"The majority of those transferred to a new home have come from transitional housing."
The houses were being built across a total of 38 locations across Hawke's Bay.
The prefabricated homes had been built by a contractor experienced with building pre-fabricated homes in Hamilton and Auckland.