PM vetoes Hobsonville state homes
No state houses will be built on the old Hobsonville airbase.
Earthworks at the site are due to start in October and construction of 660 houses should take place from early 2010.
But plans by the previous government to include 500 state rental houses among them have been scrapped.
"The prime minister has made the decision that there won’t be any state rental housing," Hobsonville Land Company chief executive Sean Bignell says.
The development is expected to include houses for first home buyers.
Details have yet to be finalised but Mr Bignell says they’ll be given a choice of sections to build their homes within set guidelines.
He says the government is expected to defer the purchase of the sections for up to 10 years.
"It’s only at a preliminary development stage at this time," he says.
Housing New Zealand first announced its interest in the 167ha site in 2002.
It now owns 111ha.
Its subsidiary, the Hobsonville Land Company, was formed in 2005 to oversee development.
Plans for the provision of some state houses were opposed by Prime Minister John Key when he was campaigning for the last general election.
More than 770 members of the Hobsonville-West Harbour Ratepayers Association also signed a petition opposing the plan.