Former refugee Tula Chettri welcomes Immigration New Zealand's announcement that Christchurch is 'expected' to become a settlement area by the end of the year.

For the first time in nearly a decade, refugees fleeing persecution and war will find a new life and home in Christchurch.

Immigration New Zealand (INZ) has yet to sign off on the decision, but says it expects the Garden City to become a settlement area for quota refugees by the end of the year.

The city lost its status after the September 2010 earthquake, which, coupled with the deadly February 2011 quake, devastated the supply of housing and placed enormous strain on essential services.

GEORGE HEARD/STUFF Tula Chhetri came to Christchurch in 2008 under the Refugee Quota Programme after spending 17 years in Nepalese refugee camps.

Advocates say the time is right for a return.

READ MORE:

* Christchurch could resettle refugees in 2017

* No refugees for Christchurch ... yet

* Afghan refugee rebuilding Christchurch the 'luckiest man'

"I think it will actually be good for our mana and our recovery to be able to contribute to people who need support and resettlement," Christchurch Resettlement Services general manager Shirley Wright said.

GEORGE HEARD/STUFF Christchurch Mayor Lianne Dalziel supports the city becoming a settlement area again, but says there are challenges around mental health services.

"It's symbolic of that recovery after the earthquakes."

Tula Chettri, a Pegasus Health partnership community worker based out of the resettlement centre, arrived in Christchurch in 2008 after spending 17 years in Nepalese refugee camps.

He was just a teenager when his family, members of the persecuted Lhotshampa ethnic group, fled their native Bhutan in the early 1990s.

"I'm happy with the place and the people and the environment," Chettri said of Christchurch.

"People are very supportive and helpful. I'm lucky to be here."

​Chettri said there was a wealth of support in the Christchurch community for refugees, and that refugees in turn would benefit the city for the skills they brought with them.

There are seven settlement areas around the country. Christchurch was considered by a cross-agency group last year, but was passed over at the time in favour of Invercargill.

However, the assessment identified a number of strengths, including a growing economy, opportunities for affordable housing and well-established refugee support services.

INZ national refugee refugee division Andrew Lockhart said officials had been working on the areas that needed strengthening since the assessment in consultation with the council.

"It is expected that Christchurch will become a settlement area once again by the end of this year but at this stage it is not possible to give a more detailed timeline," he said.

Any future settlement would start small and increase over time.

Before the 2010 earthquake, Christchurch was taking about 120 refugees a year. A limited number had settled in the city since, but they were all family members of existing refugees.

Christchurch Mayor Lianne Dalziel met with INZ officials last month to discuss the city becoming a settlement area.

"My personal view is that Christchurch is ready, but there are challenges around mental health services," she said, adding it was important to ease back into the programme.

Stuff revealed on Sunday that some refugees arriving at the Mangere Refugee Resettlement Centre in Auckland were waiting weeks beyond the six-week reception programme for INZ and Housing New Zealand to find accommodation in the existing settlement areas.

Immigration Minister Iain Lees-Galloway described it as a reflection of the housing crisis.

The Government has a policy to increase the refugee quota to 1500 a year by 2020, 500 more than the number the previous Government committed to from July this year.

New accommodation blocks are being constructed at Mangere to increase capacity. Lockhart said another four or five settlement locations would be needed to meet the new quota.