Kāinga Ora has revealed plans for the vacant 2ha block on the corner of Malfroy Rd and Ranolf St it bought in June.
The land had been vacant for 30 years when Kāinga Ora purchased it for $6.45 million.
Now Kāinga Ora has released a pamphlet stating 37 warm and fully insulated homes will be built on the site.
A previous upmarket development planned for the site, Ashworth Villas, was to have 50 lots.
The new houses will be matched to people on the Housing Register. Priority will be given to those in greatest need of a home.