More than 700 homes are expected to be built and refurbished in the Hutt Valley within five years by Housing New Zealand, in what Labour has labelled a belated vote-grabbing measure.
Housing NZ Minister Amy Adams will on Tuesday announce $9.5 million will be spent on building a mix of 330 affordable and state homes in the Lower Hutt suburbs of Naenae, Taita, and Waterloo.
Another $67.3m will also be spent refurbishing 383 existing homes in the Hutt Valley.
The announcement comes as more than 250 Hutt Valley families remain on the waiting list for state houses.
Protests were held earlier this year over how much Housing NZ land was lying vacant in the region.
Labour candidate for Hutt South Ginny Andersen says the government is finally "calling in the bulldozers" because it is chasing votes ahead of September's general election.
"We've been saying loud and clear that there is a housing crisis, and that the government needs to act."
Earlier this year Labour promised to build 400 homes in the Hutt Valley, with 100 being state houses and 300 to be offered to the market as affordable homes under the KiwiBuild plan.
These would cost from $200,000 for a one-bedroom unit, to $350,000 for a three-bedroom starter terraced home.