The trust had a contract to purchase 50 Toru apartments, due for completion early next year.
The secure home scheme is a New Zealand first, in which buyers purchase the properties through a 100-year lease arrangement and the trust retains ownership of the land in perpetuity.
Housing trust chairman Andrew Blair said he was "delighted" to receive government backing, announced by Housing Minister Megan Woods yesterday.
"We have had a contract on the Toru apartments for two years, but following the Covid-19 crisis, we are very grateful for this government assistance, which will ensure we are able to offer these properties to the 600 households on our waiting list."
Housing trust executive officer Julie Scott said she had been part of a group working with the Government to design its $400million progressive home ownership scheme, to be rolled out throughout New Zealand, from which the trust’s loan was coming.
It aimed to help several thousand low-to-moderate-income renter households into their own homes.
"It’s great to see government recognition for alternative home ownership programmes like those our sector offers.
"Financial support of this nature will enable community housing providers across New Zealand to scale up and help more Kiwis into home ownership."
Queenstown Lakes Mayor Jim Boult said it was "lovely" news and a strong indication of support for the work the trust had done.
"We went through that mayoral task force a couple of years ago on housing and we came up with some really good proposals. We’re putting those into place. This money will ensure that work is carried on.
"While the demand for housing may have softened at the present point in time, we do think it will come back again within a reasonable period and this is a good nod to the future and we’re very appreciative of the support from central government and from Minister Woods."
