Close to 50 new Kāinga Ora homes are planned in Nelson South - to help meet an urgent need for housing in the city.
Nelson, Marlborough and West Coast regional director Julia Campbell said with Nelson being one of the most unaffordable places to live in the country, finding homes was very challenging for many people.
"This is an opportunity to replace many of our outdated homes that are on large sections with more modern houses that better meet the needs of our customers today.
"It's also an opportunity to build more homes for people in need in a great location that is close to schools, recreational facilities and other amenities."
There are currently 261 people on the public housing register in the city.
Construction is underway on a 29 unit apartment development on Waimea Road, which is expected to be complete by mid 2024.
Kāinga Ora is also proposing to replace some of its existing homes - some of which are up to 80 years old - across a number of sites in Nelson South.
Campbell said the planning for those homes was at different stages and several drop-in sessions had been held with residents.
People can give feedback on the Nelson South redevelopment at until 20 June.