The planned development includes the construction of six new houses, which will be a mix of three and four-bedroom homes.
The funding would also be used for infrastructure to activate another 13 blocks of land, allowing them to be connected to power, water and sewerage services in order to encourage private investment on the sites.
The project also includes a detailed design for a housing development at Kaniva, creating a shovel-ready project that will open up an additional 42 blocks of land.
The proposed location for the development is at the Kaniva aerodrome – the only remaining council-owned land available for development.
Mayor Tim Meyer said a lack of housing was a significant barrier to attracting and retaining workers and residents in the area.
“This is a critical moment for our region,” he said.
“The lack of available housing is not just an inconvenience – it’s a barrier to economic growth and community wellbeing.
“By investing in these developments, we aim to provide immediate relief to the housing crisis while creating opportunities for private investment and long-term growth.”
If the funding application is successful, the council will undertake community consultation to ensure the development meets the needs and expectations of residents.
The council will contribute a further $100,000 towards the project.
Cr Meyer said the new housing would initially accommodate council staff in an effort to alleviate pressure on the local rental market.
The council also plans to encourage private investment on the serviced additional blocks as part of a long-term solution to the region’s housing challenges.
Cr Meyer said the council worked closely with stakeholders in recent years to identify ways to address housing shortages.
“While challenges remain, this funding application is a significant step towards delivering housing solutions for the West Wimmera community,” he said.
Cr Meyer said the council would provide further updates as the project progressed.
The council announced last month it was ‘actively exploring opportunities’ to address the significant housing shortage that is impacting families, workers and employers across the region.
Council chief executive David Bezuidenhout said it was investigating funding options from both state and federal governments to invest in housing developments in the shire.
He said housing was one of its most significant challenges.
“Without enough homes, we can’t attract or retain the workers and families we need to grow and thrive,” he said.
“Council is determined to address this issue head-on, and securing external funding is a key part of that strategy.”
Council will meet later this month to discuss the shire’s housing needs and its plans to address the shortage.
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