The report outlines plans for the section, which include 190 dwellings to be built between mid-2018 and 2022.
If given the green light by the council, it will become the first special housing development under Rotorua's Special Housing Accord.
The accord, signed in August 2017, was designed to fast-track the consent process to allow for houses to be built quickly.
It was proposed to ease pressure on Rotorua's housing stock and address affordability issues.
Professionals McDowell Rotorua sales team manager Steve Lovegrove said the development was "very exciting", and the location was "second to none".
An official launch of the project is set to take place at the site tomorrow.
Waiariki MP Tamati Coffey said any new housing stock in Rotorua was "welcomed by this Government with open arms".
"We have failed over the last nine years to adequately provide housing for our people and the local market is bursting at the seams for good, affordable houses for Kiwi families to buy.
"Maori homeownership is at one of the lowest rates ever, and hopefully whanau will be able to participate in the uptake of housing stock."
He urged developers and iwi to actively request meetings with the Government to "better understand the Government's priorities around building warm dry affordable housing under our Kiwi Build policy".
"We certainly need collaboration in this area, as 100,000 new affordable houses over 10 years is a lofty goal, but highly achievable with the right partnerships in place."
Lifewise Rotorua manager Haehaetu Barrett said the Rotorua Homelessness Governance Group supported long-term housing solutions, particularly given a recent head count that identified more than 30 rough sleepers in the community.
Meanwhile, the council committee recommended another proposed development not move forward at this stage.
The proposed development would have featured 130 dwellings, with a mixture of one- to four-bedroom houses, at 41 Hamurana Rd.
While the committee said it supported the concept, "at this point in time we consider that this form of development on this site would be incongruous with the existing environment".
"In addition, there is the potential for significant reverse sensitivity issues to arise with both traffic noise and in relation to the surrounding rural land to the north and west that we do not consider have been adequately addressed, and questions as to whether the soil contamination issues can be appropriately remediated."
