The Social Housing Unit says Maori will play a large role in deciding how money will be spent in the sector.
The Budget is making $104 million available to support the growth of non-government housing providers over the next three years.
Unit director Michael Pead says how the money is spent will be decided at a series of regional forums next month.
Mr Pead says Maori will be well represented at those meetings and iwi will play an important part in the development of the investment plan.
The Social Housing Unit, a government agency that aims to increase the supply of social and affordable housing for New Zealanders, is a semi-autonomous body within the Department of Building and Housing.
It allocates funding and facilitates partnerships, including land transfers and sale or lease of surplus state housing stock.