Ngati Whātua and Waikato-Tainui will legally challenge the Government's interpretation of Right of First Refusal.
Ngati Whātua Ōrākei representative Ngarimu Blair says the meeting with the Housing Minister Nick Smith was constructive.
"Ngāti Whātua have heard what the minister had to say and we believe he's confused us all. That's why we're taking this case to court and the court will make their decision and we'll know what the right thing to do is," Blair says.
The Government is sure of their legal position and their entitlement to use existing government land for a stated government purpose in provisional housing.
In a press conference earlier on, Prime Minister John Key stated, "We haven't actually identified these lands we want to release. There's over a 150,000 land in Auckland so whether there will be any land that they could even make a case even if we think there is an appropriate legal case to do this is a completely different issue."
Labour leader Andrew Little says the National's Budget centre-piece has turned to custard.
He says "You don't make announcements in serious issues like this without doing your homework. They haven't done their homework. Nick Smith has made a pig's ear out of this and now people who are desperate to get into their first homes are now going to have to wait even longer while the matter looks like it's going to go through court."
"We already have a team on the ground working hard to find ways of developing homes. Both us and Waikato-Tainui will achieve this," Blair adds.
While legal action takes place, the delay on building homes for potential buyers continues.