A site blessing on Tuesday marked the start of a new social housing development on Milton St, with 27 new homes set to be delivered for local whānau in response to Nelson’s growing need for affordable housing.
The development, at 115, 117, 119 and 121 Milton St, is being delivered through a partnership between The Salvation Army and the Home Foundation Group. All homes will be 100 per cent social housing, rented under Income-Related Rent Subsidy agreements so eligible tenants pay rent based on their income rather than market rates.
The project is funded by Home Capital Partners, with Kāinga Maha leading development management and Home Construction delivering the build. The Salvation Army will manage tenancies and community engagement.
The Milton St development will transform a former motel site into a community-focused neighbourhood, with a mix of 13 one-bedroom apartments and 14 two-bedroom townhouses.
The homes are targeting a minimum Homestar 6 standard, with design features intended to create warmer, drier and more energy-efficient living environments. These include high-quality insulation, effective ventilation, passive solar design, balanced heat recovery ventilation and a high-performance thermal envelope.
As well as providing housing, the development has been designed to support connection and neighbourhood wellbeing. Shared outdoor areas will include a play space, bike shelter, central green, communal BBQ area and a community room.
Greg Foster, director of social housing and property at The Salvation Army, says the project reflects a shared commitment to providing secure, affordable and healthy homes for people who need them most.
“This partnership is about creating more than housing, it is about building stability, hope, and a sense of belonging for whānau in Nelson, grounded in our Christian commitment to love and serve our community.”
Home Foundation chief executive Lissa Birse says the site blessing was an important moment for everyone involved.
“Milton St is a significant project for Nelson and for our wider housing partnership. It responds directly to local need and reflects what can be achieved when mission-aligned organisations work together to deliver affordable, high-quality, sustainable homes for the community.”
The Government has identified a strong need for more affordable and community-focused housing in Nelson, with the project supported through Income-Related Rent Subsidy contracts. Construction is expected to run from April 2026 to mid-2027, with homes anticipated to be ready by mid-2027.
The project has already delivered community benefits ahead of construction. Contents from the former motel site were donated to local charities including St Vincent de Paul, Whakatū Te Korowai Manaakitanga Trust and Tahunanui Community Trust.
The site was also made available for Fire and Emergency New Zealand training before demolition, while a deconstruction-led approach helped salvage and repurpose materials where possible.
The Milton St development forms part of a wider housing partnership between The Salvation Army Social Housing and the Home Foundation Group, with similar projects underway in Nelson South, Hamilton and Te Atatū.
