"Our housing workshops are among our most popular services that we offer to tribal members and they have provided us with keen insights into housing need, so we know there will be lots of interest in this project," said Ms Flavell.
"It's more than just a house, it's about building the wellbeing of our tribal members consistent with our long-term strategy; Whakatupuranga 2050.
"If our people are to reach their full potential they need to do it in a warm and healthy environment."
Registered tribal members who are first home buyers will have first option to buy one of the 50 homes.
If Waikato Tainui cannot find enough tribal members to participate they will open the opportunity to the wider public.
Housing New Zealand began civil works on the state housing part of the redevelopment and will start construction of the 12 one-bedroom and 18 two-bedroom homes along Dey St in November, with a completion date of mid-2019.
Housing New Zealand general manager asset development Patrick Dougherty said the development will breathe new life into the community.
"Hamilton is in need of more housing and we're excited to begin on this redevelopment.
"We appreciate the patience that the local community has shown us and we look forward to working with Waikato-Tainui to provide a more vibrant and sustainable community," said Mr Dougherty.
Hamilton's mayor Andrew King warmly welcomed the announcement.
"Housing New Zealand and Tainui are to be congratulated on the progress they're making.
"It's essential we collectively continue to make progress on increasing housing supply in our city given the population density and growth pressures we're facing," said mayor King.
Expressions of interest opened this week for iwi members who are interested in this opportunity email us at housing@tainui.co.nz or go to www.facebook.com/WaikatoTainu1/ for more information. No investors or agents.