The suggestion, in a report to tomorrow's budget hearing, was included by council staff, but deputy mayor Syd Brown said last night councillors may not agree to it.
The proposal will do nothing to allay the fears of some the council is keen to offload its public housing responsibilities.
A strategy for Dunedin's council housing was released last month for consultation, which included a range of possibilities from selling and leaving it in the hands of market forces, to making the council the sole provider of social housing, taking over the role of the State.
The report included a recommendation not to include the $1 million required in next year's annual plan to retain the status quo, which was to build five to seven units a year.
The latest report excludes the money for 10 years and notes if it went ahead, it could represent "a significant decision under section 83 of the Local Government Act", and an inconsistency between the draft strategy and and the draft long-term council community plan (LTCCP) that would have to be reconciled.
If service levels are altered significantly, the public must be notified through the LTCCP.
Asked about the issue yesterday, strategy and development general manager Kate Styles said when the draft strategy was approved, the status quo was to spend $1 million a year.
"Since that time, we have obviously done some work around expenditure and the budget."
If the money was removed from the LTCCP, the housing strategy would need to be amended.
Mrs Styles said the decision had come through the draft budget process, when staff go through their budgets making savings where they can.
Cr Brown said staff were instructed to come up with the best outcome they could for the budget but, in terms of the exclusion of the $1 million for 10 years, "That's staff's view of the world.
"Quite a few of their views I don't share, and it's the same for my colleagues."
The social housing report, and all other reports in the agenda, were there for political assessment.
"We may, in our deliberations, say 'no, you've got it wrong'."
Community development team leader Rebecca Parata said it was important to note the public would get two opportunities for consultation on the issue, at the LTCCP public hearings and during consultation on the strategy itself.
The report concluded the change was not significant under the Act, nor would it have a significant impact on the council's levels of service in social housing.
Despite that, it recommended "a suitably worded section" be included in the draft LTCCP that there was a proposal to reduce the expenditure.
It recommended formal consultation on the social housing strategy be delayed until the draft LTCCP was adopted.
