Two Tauranga infrastructure projects are being given the green light.

The third round of funding from the Government's Infrastructure Acceleration Fund will invest $539.8 million on ground work like pipes, roads and flood protection to enable thousands of new homes in communities, from Kaikohe to Hokitika.

In the Bay of Plenty, $80 million from the IAF has been allocated to major transport and wastewater upgrades to unlock housing in the priority growth area of Tauranga's greenfield Tauriko West.

Tauranga City Council expects the funding will enable around 2000 new homes, which could include public, affordable and market housing.

The transport upgrades funded through the IAF is expected to increase connectivity to the city centre and nearby Tauriko Business Estate, while developing a long-term network to support urban growth within the wider Western Corridor.

Tauranga City Council commission chair Anne Tolley says the infrastructure the IAF grant will help to fund will accelerate much-need housing development for the city.

'This is a game changer for Tauranga and will mean many more families will have access to affordable homes as the planned developments proceed.”

Tauranga City Council commission chair Anne Tolley. Photo: John Borren/SunLive.

Tauranga's Te Papa Peninsula is also set to benefit from $67.9 million of IAF funding, which is allocated to critical infrastructure upgrades to unlock housing and support intensification in the area.

The IAF funding will contribute towards Stage Two of the Cameron Road corridor upgrade – an important arterial road that runs through the centre of Te Papa Peninsula and connects the outer suburbs to the city centre.

Planned works include developing a full-length walking, cycling and public transport corridor.

Tauranga City Council expects the IAF-funded infrastructure, which also includes further transport upgrades and water supply extensions, will enable 1600 new homes within connected and vibrant communities.

Anne says the Te Papa infrastructure grant will 'support the development of many more homes within the area's existing footprint and ensure that there are enhanced multi-modal connections linking the area and the suburbs to the south and east to the city centre and beyond”.

Housing Minister Megan Woods says a total of 13 proposals have been allocated funding from this round of the IAF in 11 centres of the country; Hamilton, Auckland, Tauranga, Christchurch, Kawakawa, Kaikohe, Westport, Upper Hutt, Waipukurau, Hokitika and Pahiatua.

Combined, they are expected to enable around 16,600 new homes to be built across multiple developments over the next 10 to 15 years.

'The IAF funding will support intensification developments in Auckland, Hamilton and Tauranga to enable connected, inner-city communities.

'In Westport we are funding infrastructure works such as an arterial road and bridge upgrade to help facilitate increased housing options away from existing flood-prone areas.”

Housing Minister Megan Woods. Photo: RNZ.

Today's announcement follows on from earlier IAF funding allocations of $6.1 million in December last year, $179 million in July, and $192 million last month (October).

'This means, to date, $916.3 million in IAF funding has been committed to infrastructure projects throughout the country,” says Woods.

'Combined, these IAF-funded projects are expected to enable around 30,000 to 35,000 new homes for New Zealanders over the next 10 to 15 years.”