THE architects of a plan to fill a gap in the housing market, affecting older rural and regional residents, are seeking government funding.
The Dunolly and District Hospital Auxiliary is seeking $3 million for a project that would deliver a dozen two-bedroom units for older community members whose housing no longer met their needs.
The units would be built on part of the Dunolly District Hospital site and would be constructed and managed by project partners Community Housing Limited.
Residents would be charged income-linked rent.
The Dunolly and District Hospital Auxiliary has been working on the community housing project for several years.
Auxiliary president Fiona Lindsay said funding was all that was needed to progress the initiative, which aims to support independent living.
She said the project had widespread support, but did not seem to meet the criteria for state and federal government programs.
Member for Ripon Louise Staley said the Dunolly Housing Project was not the first to try to address the issue, which was keeping people in sub-standard housing and prematurely entering nursing homes.
But she said the funding solution wasn't clear.
"Given this project is ready to go and is effectively infrastructure, why can't we call it COVID-19 recovery?" Ms Staley said.
She said she had advocated for the project to the former health minister, the treasurer, and now housing minister Richard Wynne.
A state government spokesperson said the government continued to invest record amounts in housing and homelessness programs across the state.
"We continue to work with the community housing, aged care and disability sectors to identify further funding opportunities," the spokesperson said.
Federal Member for Mallee Anne Webster is also believed to be among the initiative's supporters. Her office has been contacted for comment.
The Dunolly and District Hospital Auxiliary's housing project working group has prepared a video, which it has shared with a number of politicians as part of its advocacy.
The video highlights the need for housing to support people in Dunolly to live independently and remain in their community as they age.