People with social housing needs, including low-income, vulnerable families, are to benefit from funding administered by the Social Housing Unit (SHU).

Housing Minister Phil Heatley has announced the first tranche of funding from the Niche segment of the $37.35 million Social Housing Fund.

"This is tightly targeted funding that is carefully managed by non-government housing providers who are in a position to direct the benefit straight to people in real need," he said.

"The money has been spread across the country and is going to a good mix of specialist providers."

In the Niche Fund, West Auckland's VisionWest has been granted $1.2 million to purchase land and build six houses for its target group - low-income, vulnerable families who often end up homeless.

The Nelson Tasman Housing Trust has received $1 million to provide eight affordable market rental properties for families with up to four children.

Niche funding has also gone to Bays Community Housing Trust ($530,000, North Shore, Auckland); Tauwhao Te Ngare Trust ($1.31 million, Bay of Plenty); "Whatever It Takes" Trust ($500,000, Hawke's Bay); Habitat for Humanity ($50,000, Northland) and Accessible Properties NZ ($560,000, Christchurch).

The Social Housing Unit was set up last year as a key part of recent Government initiatives in social housing. It aims to meet the growing need for social and affordable housing by allocating funding and forming partnerships with third-party providers that provide social and affordable housing.