Home builder and developer Mike Greer is set to build more than 100 KiwiBuild homes in West Auckland and Christchurch.
The agreement to build 104 homes includes the first in Canterbury - and the cheapest KiwiBuild announced so far: 11 two-bedroom standalone homes in Kaiapoi for $360,000 each.
Other homes will be built in Huapai, Whenuapai, Pukekohe, Kaiapoi, Rolleston, Pegasus, Woodend, Rangiora, Halswell, Marshland, and Spreydon.
They will be completed between now and mid-2020 and will be a mix of two and three-bedroom, standalone and terraced homes, ranging from $360,000 to $650,000.
Housing and Urban Development Minister Phil Twyford announced the new partnership today.
The agreement teamed KiwiBuild with one of New Zealand's largest residential construction firms, he said.
"This agreement with one of New Zealand's premier home building firms show KiwiBuild is gathering momentum. I hope these 104 homes will be just the first of many we will build with Mike Greer over the coming years."
The announcement comes as the Government hopes to breathe new life into a programme beset by criticism after it failed to meet its target build numbers for its first year.
Reserve Bank Governor Adrian Orr last week warned that the Government's flagship KiwiBuild policy will have a significant "crowding out" impact on the private sector.
A discussion document published by the Reserve Bank projected KiwiBuild would create an additional 7100 – 14,200 homes in New Zealand by 2022, above what was already expected.
"While KiwiBuild is assumed to contribute 100,000 affordable houses over 10 years, it is unlikely that this will be achieved without crowding out a significant amount of other residential construction activity, given the current and projected state of the construction sector," the paper said.
It also comes as the Government has struggled to sell some KiwiBuild homes, most notably in Wanaka.