The $19.2 million programme will replace 29 one-bedroom units and add 25, bringing the council’s total to 965 units.
People aged over 55, in urgent need of housing, have priority for the units.
Sites for redevelopment were identified in Oxford St and Fitzroy St in South Dunedin and in Thorn St, Caversham.
A fourth site was identified but its location has not yet been disclosed.
Ground testing and layout drawings were yet to be completed for the two-storey development, which would replace existing units and add 10 at the property, known as Site X.
The upgrade was designed to provide both more and better housing that would be warmer, drier and more suitable for people using wheelchairs.
The next batch of work follows two significant community housing projects by the council — the Palmyra renovation in the central city and School St redevelopment in Kaikorai — carried out between February 2000 and October last year.
In 2021, the council approved a 10-year plan that included $2m a year for building more community housing.
The $20m tally for new capital spending was complemented by $22.6m for renewing housing assets, providing a $42.6m 10-year budget overall.
The 2024-27 programme is part of that package, comprising $10.3m of new capital and $8.9m of asset renewal.
City council property services group manager Anna Nilsen told councillors at a meeting this week the Palmyra and School St projects had been ‘‘life-changing for some of our tenants’’.
Heating costs had dramatically reduced, she said.
Glazing work at School St had created a quieter environment and tenants commented this made them feel more secure.
Ms Nilsen said any tenants displaced by the work would be rehoused within the community housing portfolio.
Cr Christine Garey said the council could be judged on how well it looked after vulnerable members of its community and the benefits of the programme were evident.
Cr Sophie Barker said the programme would increase the pool of homes available, but there remained a housing crisis and a homelessness problem.
Dunedin Mayor Jules Radich said the council had a long history of supplying homes for older people.
Wide doorways would be a feature of the units and Mr Radich encouraged builders to adopt this policy for any new homes in the city.
Construction of a two-storey development in Thorn St is due to start in the first half of 2025 and it will include 11 additional units.
Nine existing units there would be demolished and replaced.
Demolition of four one-bedroom units in Fitzroy St is due to start early next year.
The replacement four units could be completed by the end of 2024.
Four new one-bedroom units are to be built at the vacant site at 235 Oxford St.
The land is next to existing community housing and construction is to start mid-2024 and be completed early in 2025.
Planned community housing
| Total new and redeveloped units | Unit increase | Start date | |
| Thorn St, Caversham | 20 | 11 | 2025 |
| Site X | 26 | 10 | ? |
| Oxford St, South Dunedin | 4 | 4 | 2024 |
| Fitzroy St, South Dunedin | 4 | — | 2024 |
| Overall | 54 | 25 | 2024 |
Source: Dunedin City Council
