The social housing agency is reviewing hundreds of developments across the country, as Housing Minister Chris Bishop has said there will be an overhaul of its operations.
Among the developments on hold is the 11-home section in Albertson Ave, Port Chalmers.
Earlier this year, Kāinga Ora knocked down a six-home section in Albertson Ave to make way for the development.
That area of land remains bare and undeveloped.
Port Chalmers School principal Vicki Nicolson said she was hugely disappointed by the stalled developments.
"It is important for whānau to have warm, secure housing, and Kāinga Ora informed us that when they began relocating people from the established houses in Albertson Ave, they had many on their list who were in need of accommodation."
Kāinga Ora regional director Kerrie Young has previously said all tenants of the former Albertson Ave site are moved into suitable state-owned accommodation while developments are ongoing, but Ms Nicolson said she was concerned about the condition of some of the temporary accommodation.
"We have heard stories about the places they might be living in, and they don’t seem that acceptable."
The first stage of the development, where five homes were demolished to make way for nine new social homes, was almost complete, she said.
The Otago Daily Times knows of several tenants who Kāinga Ora promised would move into the new homes who are now in limbo due to the stalled development.
Ms Nicolson said she knew of school pupils who had been directly affected by the halted developments and were "in limbo".
The school has a roll of 95 pupils.
"Albertson Ave in Port Chalmers has access to excellent facilities, including the school, kindergarten and an early childhood education centre.
"The Four Square supermarket and community library are within walking distance, as are the medical centre and other services for whānau. Public transportation to Dunedin is also easily accessible.
"The community is the heart of Port Chalmers and providing housing within it is paramount. Another concern for the school and our tamariki is that there is now an empty section at the start of our street. We wonder who will be responsible for looking after this section, maintaining the lawns, and ensuring the site does not become an eyesore or accumulate unsafe rubbish."
A Kāinga Ora spokesman said it did not have a timeframe for a decision on the future of the development.
"As decisions are made on the Albertson Avenue redevelopment, we will keep the community and stakeholders informed.
"It is too early to talk about what might happen to the land, as no decisions on the project have been made yet."
