Dunedin's only co-housing project will still contain one social housing unit, despite the rising cost of the development.
The Dunedin City Council has agreed to buy one-three bedroom unit at the Co-housing Otepoti High St development for $675,000.
In 2016 council had already agreed to buy two houses in the 26-unit project, for $690,000.
They were set to be used for social housing.
But during the public forum at yesterday's full council meeting, project member Catherine Spencer told councillors the units' cost had increased by about 20% since 2016.
Except the two reserved for the council, all units had been sold, and a bank had committed in principle to provide a loan for the project, she said.
''The bank is not only interested in your financial contribution here, but also places great value on your support as the local authority.''
Mrs Spencer suggested the council down-size its commitment and buy one one-bedroom and another two-bedroom unit.
Without the council's support, the project could be further delayed, she said.
Councillors agreed during a non-public part of the meeting to buy the one unit.
In a statement, council acting chief executive Sandy Graham said councillors were keen to support the project and the philosophy of co-housing.
Mrs Spencer said the group was delighted the council would still support the project.
