The Government's opened up its 1-billion dollar Housing Acceleration Fund

The contestable funding package announced in March, is now open for expressions of interest from local councils, iwi and developers.

Funding will be prioritised for greenfield expansion projects, and developing underutilised land.

The initiative is expected to produce at least 200 new homes in places such as Auckland, Tauranga, Wellington and Christchurch.

At least 100 new builds are projected for smaller urban centres like Rotorua, Palmerston North and Nelson.