City councillors have approved the next step in establishing Tauranga's first special housing area on land off Waihi Road.

The property, at 162 Waihi Road, is a former camping ground and has been vacant for about ten years.

The proposal to build at least 30 new houses has moved a step closer to becoming a reality.

The proposal is for PMP Developments Ltd, and Classic Builders Tauranga Ltd, to build at least 30 semi-detached/duplex dwelling units, with a mix of one and two storey designs and on-site car parking with one access only via Waihi Road.

Now it is council approved, the SHA will be recommended to the Minister of Housing in accordance with the Housing Accords and Special Housing Areas Act 2013. The units are expected to sell for around $350,000 and will be completed by July 2016.

Tauranga City Council is identified in the Act as a district with significant housing supply and affordability issues. The city council signed the Tauranga Housing Accord with the government in August this year.

There is no prescribed target in the Tauranga Housing Accord but all the proposed residential units will be smaller, medium density residential units, which by their nature will be at the more affordable end of the housing market.

Under normal circumstances the proposal would not be granted consent because it is non-complying. There will be one independent dwelling unit per 241m2 (gross site area) as opposed to one dwelling unit per 325m2 net site area as a permitted activity.

The development promotes more than 12 residential units from a private right of way. The outdoor living areas will be less than the prescribed minimum in the suburban residential zone of 50m2.

In all other respects the development is complying with the performance standards of the Suburban Residential Zone. PMP Ltd want the non-compliances approved as part of the declaration of a Special Housing Area, says environmental policy manager Andy Ralph.

Only 12 buildings are proposed on site, less than the quantity of freestanding residential homes that can be built on the site as of right. The developers have included an onsite park at the rear of the property.

Because it's a Special Housing Area the government has restricted objections to only the immediate neighbours. Concerns from Waihi Road residents about the impact the development will have on traffic are not counted says planner Andy.

Replying to councillors' questions he says perceived traffic issues are not enough to stop the project, though a slip lane may be required. Issues like building sound proofing, are Building Act requirements which will not be affected.