The government and local councils haven't yet been able to decide how to share the cost for high-risk flood-damaged homes.
It was announced at the beginning of June that councils and the government would split the cost of buying out Category 3 homes and discussions were under way.
Those negotiations were expected to be completed this month.
But Minister for Cyclone Recovery Grant Robertson said although there has been progress, discussions are taking longer than expected.
"It's been agreed that more time is required to work through the policy and parameters, and to make final decisions on how properties will be categorised. This includes which homeowners will be offered a voluntary buy-out."
Robertson said he is aiming to have agreement on the arrangements by the end of July.
"While I acknowledge the importance of getting the policy right, I am also conscious people are wanting certainty and to know their choices for where they will live."
He said coming to an agreement is a priority for the government.