Construction is set to start on a government-supported development of 20 papakāinga housing units at the Te Āwhina Marae in Motueka.
A dawn blessing was held on Monday, with a mauri stone laid on the grounds of the marae to mark the significant milestone.
Associate Minister of Housing Peenie Henare said it aligned with the government's wider hosing aspirations for Māori.
"We want our marae to be places where our people live and where we come together, they're not just beautifully carved houses sitting alone so to have people moving back to marae is really important," Henare said.
It was a housing solution led by those who knew the needs of their community, he said.
"The by Māori, for Māori approach is the only way to do it and what we see when we allow them to lead the kaupapa you get a kaupapa that's far more meaningful and it's not just about building bricks and mortar. It was made clear to me today that this is for the cultural development, the economic development and the future resilience."
The government has invested $10 million into the $12.3m housing project.
Te Āwhina Marae redevelopment project team chair Paul Morgan said the project was substantial and would allow for intergenerational living on the marae.
"Like all of New Zealand, housing affordability issues are significant, including in Motueka so it's very exciting for our families because we will have quality homes and we will have affordable prices to have all the generations from the nanny kuia to our children and their parents."
The development is in partnership with Te Puni Kōkiri and marks the beginning of the Te Āwhina Marae Redevelopment Project, which is a 10-year vision to completely rebuild the marae facilities that will revitalise the economic and cultural development for whānau and the wider community in the region.
It is expected to cost about $28m and contribute significantly to the local economy through construction, tourism, education, social services and arts and culture.
Te Āwhina Marae Board chair Rima Piggott said the current buildings were "humble" and while they had serviced Motueka and wider Te Tauihu community for decades it was time for a revitalisation.
"This redevelopment gives us the platform to share more of our Te Tauihutanga (culture and identity), connect our whānau to their whakapapa and play an important role in the cultural and economic resilience and regeneration of the region following the pandemic."