The former Stockton Centre will be transformed into accommodation for people experiencing homelessness in the Lower Hunter.
Homes NSW is leading the $2 million 'meanwhile use' proposal that will refurbish seven homes at the former residential centre for people with disabilities to provide temporary accommodation for up to 25 people.
Properties to be upgraded include five five-bedroom homes, one two-bedroom unit and one one-bedroom unit.
The project will be delivered in partnership with social and affordable housing provider, Home In Place.
"I have heard heart-breaking stories from people in the Hunter who are couch surfing, sleeping in cars or on the street. I'm pleased to have turned our meeting on site last year into an outcome that could change people's lives," Port Stephens MP Kate Washington, who is also Minister for Disability Inclusion, said.
"Making the former Stockton Centre site available as short-term accommodation for people experiencing homelessness and providing them with the support they need to move into a longer-term home is a welcome step for our community."
Homes NSW is exploring different options for the long-term future use of the site, which was closed in 2021.
The homes and services are expected to become operational in approximately eight months. The site needs work to ensure the security and safety of the temporary residents, provide essential amenities and ensure the houses meet the standard appropriate for transitional housing needs.
More than 55,000 people, including close to 2000 in Newcastle and Port Stephens, are on the social housing the waitlist.
"We are grappling with a housing and homelessness crisis, and we need to think outside the box to deliver more safe and secure homes for people in need," Minister for Housing and Homelessness Rose Jackson said.
"The NSW Government is committed to exploring every option to transform underutilised sites into fit for purpose housing. If we have mothballed properties sitting empty, we will investigate whether they can be upgraded and used to provide vital shelter.
"Transforming these homes into a safe base for people who would otherwise be sleeping rough is the first step to helping people get back on their feet and into longer-term accommodation.
"We know we have a lot of work to do to confront this crisis, but this type of innovative thinking is helping to drive the solution."
Newcastle MP Tim Crakanthorp said there were about 2000 Novocastrians who did not have a stable and secure home.
"Every day, I'm dealing with people experiencing homelessness," he said.
"This may be a small step, but it is a significant step and having access to this accommodation will make a huge impact on so many lives.
"The previous government should be ashamed of the condition the Stockton Centre has been left in. I'm so pleased that we have found a way to repair these seven houses and bring them up to a suitable standard.
"Just on Friday I was at the House of Hospitality refuge with the 2024 Newcastle Woman of the Year, Sister Carmel Hanson. It is fantastic to be increasing and expanding our transitional housing capacity in Newcastle."
