Christchurch City Council has agreed to sell a block of land to a non-profit consortium which wants to build "social housing".
The consortium, which includes the Housing Foundation and The Salvation Army,
is planning to build the 42-unit complex for low to medium income residents in the suburb of Hornby.
The council says the project will greatly benefit the city by providing social housing units and affordable home ownership to people who would not otherwise be able to buy a house.
The final sale of the land is subject to the consortium receiving Government funding.
The Council says if the project does not go ahead by June next year it has reserved the right to re-purchase the land for the $525,000 - the same price at which it sold.
The decision to sell the land means a staff recommendation to build a council-owned 35-unit social housing complex will not go ahead