A plot of vacant and under-utilised land in Fraser Cove is set to become home to five new affordable houses thanks to a joint venture between Housing New Zealand and Habitat for Humanity.

The two organisations announced this week that the project involves building four new homes, as well as refurbishing an existing state house on partly vacant land on the corner of Fraser and Wilkinson streets.

A Habitat for Humanity home built in Tauranga earlier this year. Photo: Supplied.

These stand-alone properties will include a pair of two-bedroom homes for Housing NZ tenants and three 3-4 bedroom homes for Habitat for Humanity customers.

Housing NZ Tenancy Services regional manager Darren Toy says: 'This is an excellent example of Housing New Zealand building partnerships with local affordable housing providers by freeing up vacant and under-utilised land for the benefit of the whole community.

'The project will make efficient use of land while bringing a higher standard of design and construction to the neighbourhood and make a positive contribution to the community.”

Habitat for Humanity Tauranga chairman Paul Broatch says the venture is a great example of how land can be better used to create homes for families in need.

'We believe establishing a strong partnership with Housing New Zealand is a great step forward for the affordable housing sector,” says Paul.

'It will enable an existing block of land to carry double its previous housing volume and number of families accommodated – a case of the familiar quarter-acre section being put to better use.”

The site includes two sections side-by-side. The Fraser Street section is vacant following fire damage to the original dwelling and there is one existing state house on site at 4 Wilkinson Street.

This house will be relocated to the rear of the site, refurbished and retained by Habitat for Humanity.

Darren says Housing NZ's new two-bedroom properties will help meet demand for smaller properties in the area.

Habitat for Humanity uses volunteer labour to help build and renovate its houses to keep costs down. As part of the joint agreement, Housing New Zealand has pledged a number of staff to help with building work once it begins.

The Housing New Zealand properties will be designed by local architect Adam Taylor and will be fit for purpose quality units with a design focus on safety, security and solar efficiency.