Infrastructure and site works for the new homes - as envisioned in this artist's impression - are expected to begin this year, and the first homes could be completed by early 2019.

Work is set to begin this year on 71 new homes planned for the former Jebson Place site.

The Government has announced that it will sink about $7 million into redeveloping the Hamilton East site and its surrounding area.

Social Housing Minister Amy Adams said on Thursday the project is a partnership between Housing New Zealand and Waikato-Tainui.

HOUSING NEW ZEALAND Derelict buildings that were an eyesore in Hamilton East for many years will be replaced with modern homes.

Housing New Zealand will invest about $7m to build and retain at least 26 homes as social housing.

READ MORE:

* The slums of Jebson Pl

* Housing NZ to redevelop Hamilton East site

* Bulldozers move on Ham East homes

The remaining 45 homes will be developed by Waikato-Tainui.

HOUSING NEW ZEALAND Housing New Zealand will invest about $7 million to build and retain at least 26 new homes as social housing.

It was 2014 when plans to redevelop the 21,000-square-metre site bounded by Old Farm Road, Cassidy Street, Dey Street and, through the middle, Jebson Place.

As residents began to move out of the block and the homes were boarded up, walls were tagged. It became a slum.

Demolition of the 58 units, which were built in the late 1950s and early 1960s, began this year.

All Jebson Place tenants have now been relocated to Housing NZ homes.

The last remaining buildings are on track to be demolished by the end of June.

Infrastructure and site works for the new homes are expected to begin this year and the first homes could be completed by early 2019.

However, building partners have not been selected and all timeframes are subject to change, she said.

As part of the development, the Jebson Place cul-de-sac will be demolished and a new road will be established between Cassidy and Dey streets.

Waikato-Tainui's intention is to acquire the remainder of the site and carry out subdivision works before building affordable housing for tribal members and selling some of the subdivided lots on the open market.

Adams said the homes being built will be the kind needed to respond tp Hamilton's social housing demand.

"The majority of these new social housing homes will be one- and two-bedroom houses.

"Close collaboration between Government and iwi means we can get the best outcome for the Hamilton community."

"All the new homes will be attractive and modern, and the mix of social and private housing will help create a healthy and vibrant community," Adams said.

"A number of shared open spaces will also be created for the community to enjoy.

"Throughout the regions, Housing New Zealand are taking old rundown stock and building warmer and safer houses for New Zealanders to live in.

"The 26 new social housing homes at Jebson Place are on top of the 43 houses being built as part of Housing New Zealand's Hamilton infill programme, announced last month."

﻿Each week, the Government spends more than $2.2m on supporting 38,000 people in the wider Waikato region.

Nationally, the Government will spend $2.3 billion to support more than 310,000 households with their housing costs this year.