Fourteen new homes have been handed over to tenants in Arnhem Land, bringing the total number of homes delivered in the community under the Northern Territory Remote Housing Agreement to 34.

The latest housing handover in Maningrida — a community of 2,500, 500 km east of Darwin — includes six three-bedroom duplex dwellings, three four-bedroom homes, one five-bedroom home and four one-bedroom units.

Northern Land Council chief executive Matthew Ryan welcomed the completion of the housing upgrades.

"As one of the biggest remote communities in the NT, and where I call home, it is fantastic to see these housing upgrades finished in Maningrida," he said.

"Overcrowding leads to health issues such as rheumatic heart disease and impacts safety and wellbeing. Making sure there are enough houses is a big part of addressing this issue.

"It is critical that the Commonwealth and Territory Governments continue to invest in building homes - not only in communities but in homelands too. Our people must be able to live and thrive on Country."

Federal Minister for Indigenous Australians Senator Malarndirri McCarthy said the latest handover marked progress in addressing housing shortages.

"We know demand for housing in remote communities remains high, and there is more work to do," she said.

"We will continue to work with the Northern Territory Government, the four Aboriginal Land Councils and Aboriginal Housing NT, to deliver safe and secure homes for Territory families in remote communities."

The project is also expected to provide local employment and participation opportunities, supporting the community's longer-term social and economic development, and comes as part of the Australian and Northern Territory governments' $4 billion, 10-year Remote Housing Agreement.

Special Envoy for Remote Communities Marion Scrymgour said housing shortages and overcrowding continued to contribute to disadvantage in remote Indigenous communities.

"We are making strong progress in Maningrida on housing, but like everywhere in the NT, we have a lot more to do," she said.

"Decent housing is critical, and we must keep going with our commitments to ensure we deliver more homes for our people."

Northern Territory Minister for Housing Steve Edgington said the completed homes would provide families with improved living conditions.

"These homes are about more than four walls and a roof. They give families safe, modern places to live and stronger foundations for better health, education and employment," he said,

The homes are part of the Maningrida Stage 2 subdivision and are intended to help address housing demand and overcrowding in one of the Northern Territory's largest remote communities.

The 10-year agreement, which aims to deliver up to 2,700 homes across remote Northern Territory communities, with a target of halving overcrowding, has been mired in debate recently, with the NT Government arguing the number of homes expected to be completed should be reduced.

In August, Senator McCarthy told Parliament the NT Government "don't want to stick to the agreement".

"They want to remove a certain amount of money from it for administration and for the land, in terms of where the houses will be built, in terms of making sure the land is ready," she added.