The Christchurch City Council says it will spend $100,000 to create an emergency shelter for homeless people in the earthquake-hit city. The Government will put another $100,000 in.
Deputy mayor Vicki Buck says the city's Housing Committee made the resolution on Tuesday afternoon in response to a housing shortage that has reached crisis point.
Almost 1000 council-owned houses were lost in the 2010 and 2011 quakes.
Mrs Buck says council staff will begin work on the former City Mission building in coming days in order to create four units that will be suitable for short-term stays.