The mayor of Porirua is delighted the government is putting more money towards infrastructure to allow new homes to be built.
An extra $204 million will be spent to advance urban development in eastern Porirua.
It brings the total amount of housing acceleration funding there to $340m.
The total investment would enable up to 744 new homes to be built on Crown land, which includes replacing 186 old Kāinga Ora homes that are no longer fit for purpose, Housing Minister Megan Woods said.
The remainder would be 100 public homes and up to 458 affordable and market homes.
"Working with our project partners Porirua City Council and Ngāti Toa Rangatira, it is an opportunity to set the foundations for thriving communities," Woods said.
Porirua mayor Anita Baker said the housing situation in Porirua was dire.
"It's shocking. People living in appalling conditions and families cramped into tiny rooms because they've got families sharing houses.
"There's nowhere for people to live.
"We have so many people on the housing list, so it's really needed."
New housing needed to be affordable for people who lived there, she said. Having Ngāti Toa Rangatira at the table had made huge difference.
The city was convenient and popular to live in, with good public transport and road connections to Wellington, the Hutt Valley and Kāpiti, Baker said.
However there had been underinvestment in housing, and more money would also be needed for projects including a community or library centre.