More than 70 homes are set to be built in Takapuna on Housing New Zealand land under the government's scheme to fast-track new housing.
The development will replace 11 elderly state houses on the corner of Killarney St and Lake Pupuke Drive and is likely to include private terraced houses and apartments.
Auckland Council says it is required to ensure infrastructure, including transport, can cope before giving approval.
A $22 million upgrade of nearby Anzac St from Auburn St to Fred Thomas Drive is planned for 2018 but the council says the project could start earlier if needed.
The Takapuna project is among 11 Auckland Special Housing Areas announced in December aiming to bring 9500 extra homes to the region.
Fast-tracking law requires consent approvals in these areas within three months in existing suburbs, like Takapuna, or six months in greenfield developments.
A mix of private homes and state housing is planned for the development with work expected to start within two years.
It will be one of Housing New Zealand's first projects of its kind under the new legislation.
Housing New Zealand asset development manager Sean Bignell says it has spoken with existing tenants about the proposed redevelopment as it is likely they will have to move.
"This means we will help support them to move into another state home, if they need it, and assist with relocation costs."
- © Fairfax NZ News
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