The headline announcements in Budget 2016 - $258 million in social housing and $100 million for surplus Crown land purchases - are designed to ramp up supply in the city and offer support to families with desperate housing needs.
Social Housing Minister Paula Bennett said $200 million would be spent on creating 750 more housing places for people on the social housing waiting list.
"A large portion of this funding is directed at social housing in Auckland, where the tight property market also has an effect on those in social housing.''
The surplus Crown land scheme was announced in last year's Budget.
Funding of $52 million has so far secured 13 hectares of land in Auckland, which has potential for nearly 1000 houses, apartments and townhouses.
That funding has now been doubled, meaning it could potentially produce up to 2000 new houses in Auckland.
"The programme's goal is to increase the pace of housing development and to put a greater focus on bringing more affordable housing to the market,'' Housing Minister Nick Smith said.
The Government also confirmed that a national policy statement would be released soon on urban development, which would direct councils to adjust their plans to allow for more densification. The Government has indicated that if Auckland Council does not agree to adjust its plans, it may intervene.
There are no specific measures in the Budget for first-home buyers, which the Government says are already being looked after through Kiwisaver subsidies.
A $41 million investment in emergency housing was announced ahead of the Budget.
The Government has since confirmed that grants to help house homeless people will be brought forward from September to June.
'Throwing good money after bad'
The Government is throwing good money after bad regarding the extra $100 million boost to develop Auckland housing as announced in the budget, according to the Taxpayers' Union executive director Jordan Williams.
"Instead of cutting the regulatory taxes choking housing supply, once again politicians are trying fix a regulatory problem by throwing more money at it.
"The solution to Auckland's housing crisis is simple and free. Cut the regulatory red tape, adopt the Labour Party's policy of abolishing Auckland Council's metropolitan urban limit, and free up the limits on supply,'' he said.
Mr Williams said the only silver lining from the budget announcement was the reference to a new 'National Policy Statement on Urban Development'.
"A generation of renters are hoping that the policy statement comes soon and reins in those councils that are holding up housing supply,'' Mr Williams said.
Property Institute of New Zealand Chief Executive Ashley Church had a mixed response to the Government's budget measures on housing.
"Any Government which touted itself as being able to solve the Auckland housing crisis on its own would need to embark upon a massive state-funded home building programme - and that simply isn't going to happen while Bill English holds the purse string''.
Mr Church said the Government had missed an opportunity to influence the housing market in other ways.
"While it's good to see that there has been no repeat of last years ill-considered attempts to artificially slow the housing market, and no mention of knee-jerk responses such as land taxes - it's disappointing that there are no positive initiatives to further encourage the private construction of new homes, '' he said.
Mr Church applauded the proposed National Policy Statement on Urban development, which directs councils to allow more housing development where necessary, but said it would not achieve what the Government is claiming for it.
"Opening up more land is a good thing - but any belief that doing so will reduce house prices is naive. We need tens of thousands of new homes in Auckland - so the best that can be hoped for is to reduce that backlog as quickly as possible so as to slow house price inflation down from its current dizzying heights. But house prices aren't going to drop anytime soon''.
BNZ and Community Finance partners Good Shepherd New Zealand and The Salvation Army were delighted with the budget announcement of $4.2 million of operating funding over four years for their Community Finance initiative.
Launched in 2014, Community Finance has approved more than 200 low-interest and no-interest loans to financially vulnerable New Zealanders who may not meet bank criteria, and as a result can be forced to take out loans with other providers at very high interest rates and fees.
BNZ estimates that the $500,000 of lending to date has saved Community Finance customers more than $280,000 when compared with borrowing the same amount through alternative lenders.
The additional funding will allow more community finance loan workers to be trained and the programme to be expanded beyond the initial trial regions of West and South Auckland.
BNZ Chief executive Anthony Healy said: "We are thrilled that the Government has decided to further invest in Community Finance and we applaud Ministers Bill English and Anne Tolley for their commitment to this initiative.''
"BNZ has made available $60 million in capital to help a group of New Zealanders break the cycle of using unscrupulous lenders, who often charge crippling fees and penalty upon penalty. Community Finance offers these customers a fair, safe and affordable line of credit.''
"Community Finance delivers more than just low and no interest loans. We know there are broader societal benefits. People learn budgeting skills. Being able to buy a new fridge can mean a healthier diet. A safe car can enable access to the job interviews and better employment prospects. Today's announcement will mean we can reach more people and get a better understanding of those broader benefits, and how the programme can help contribute to a higher achieving New Zealand.''
Good Shepherd New Zealand chief executive Fleur Howard said Good Shepherd Australia New Zealand has led the development of community microfinance and financial inclusion programmes in Australia for over 30 years, impacting over 400,000 Australians on low incomes.
"We are looking forward to working with our partners to explore new and innovative ways to support our clients and continue to improve and expand Community Finance's operations across New Zealand.''
Major Pam Waugh Territorial Social Service Secretary, Salvation Army, said there have been many successful outcomes in family wellbeing through a reduction in financial stress and families achieving financial capability.
Community Finance currently operates from The Salvation Army Community Ministries' sites in Manukau and Henderson.
