West Harbour Community Board chairwoman Ange McErlane’s comments come in response to reports that Kāinga Ora has halted its development in Albertson Ave, Port Chalmers.
"I and the members of the West Harbour Community Board are very disappointed to read about the delay/halting of the Albertson Ave housing project completion here in Port Chalmers.
"People were moved out of their homes, who are part of our community, and were in some cases due to return when the new homes were built."
The original plan was to demolish 11 former state homes to create 20 new homes that are up to modern insulation standards.
But the housing agency confirmed this week the second half of the project had been put on hold pending further information from the government — before it had completed building the first half of the project.
Ms McErlane said this was a "bad move by government, punishing the South again", but she did not blame Kāinga Ora, as it was "caught in the middle of a government policy".
"I understand even some of Kāinga Ora were in the dark about this decision."
The government commissioned a review of the housing agency, which found it was badly in debt.
In response, the government restructured the Kāinga Ora board and has tasked the new members with a "turnaround" plan for the agency, which has meant certain projects have been put on hold.
But Ms McErlane said the Albertson Ave project needed to continue instead of pausing halfway, which was of "no use to anyone".
"The focus should be on people in need, who deserve to have a warm dry home that they were promised, and shows a total disregard for these people and is disrespectful to our community.
"The board like the community are very disappointed with this news and would like more information on the process and how and when this issue will be resolved."
Board representatives would be happy to meet Kāinga Ora representatives to better understand this decision, but also make the case for the needs of the community and the housing it was promised, she said.
The Otago Daily Times sent Kāinga Ora questions about the development, including why the project was "under assessment", how long that assessment would take, how much the project had cost so far and what recent consultation there had been with the community.
It declined to answer those questions and instead repeated its earlier statement that the redevelopment of these sites was "under assessment while we confirm our social housing projects for the next two years, with a focus on priority locations and best value for money".
Housing Minister Chris Bishop declined to comment.
