Kāinga Ora hopes new fencing, speed bumps, signage and mirrors will stop vehicles hitting children in driveways.
Five children are hit and killed a year in driveways, and more than 20 are hospitalised.
Half the time the driver is the child's parent.
Kāinga Ora is altering properties for 8500 tenants and has spent $2 million in the past financial year - to prevent these accidents.
Safekids Aotearoa director Mareta Hunt said driveway accidents cause extreme heartbreak for families.
Hunt said many families cannot afford these changes, and lives will be saved because of the initiative.
"Ensuring whanau get to enjoy their tamariki and live a wonderful life with their children without these adverse incidents because it is really painful."
She hopes the funding will extend to all state housing.