A social housing advocate believes the Christchurch City Council is being heartless and hypocritical over council housing.

The Social, Community Development and Housing Committee is discussing lending $30 million to the Otautahi Community Housing Trust to build 130 new social housing units.

But Christchurch Progressive Network convener John Minto says that money is only a loan, having to be repaid at commercial interest rates.

"The council has spent $8.5 million in rates rebates for wealthy residential property developers but is refusing to spend a single dollar on low-income family housing."