Kāinga Ora Otago-Southland regional director Kerrie Young said increasing the number of homes on some of its sites meant people in need could live in areas such as Mosgiel, close to schools, open spaces, shops and other amenities.
"There is an urgent requirement for more public housing options in Otago and the redevelopment of these Mosgiel sites will help us meet some of this need."
The redevelopment included replacing nine Kāinga Ora properties nearing the end of their economic life with 20 warm and affordable homes across five sites in Doon, Green, High and Spey Sts.
The homes would be a mix of one-bedroom and two-bedroom houses with their own off-street parking.
Eight of the houses would be built to full universal design standards to be accessible for occupiers with mobility issues.
Demolition of the existing homes would start in the coming months and completion of the redevelopments was scheduled for next year.
Kāinga Ora had also signed agreements for 12 additional homes in Mosgiel, which included one-bedroom and two-bedroom homes in Wickliffe, Argyle and King Sts respectively scheduled for completion in June, July and December this year.
