A push for funding to build 17 dwellings in Darlington Point has been rejected by the state government.
As a result, Murrumbidgee Council is now looking to build four two bedroom houses in each of the shire's three communities.
Council will look to sell two council-owned residences in Barwidgee Boulevard and utilise the funds to build 2 new homes in the upcoming Young Street subdivision.
But the first houses to be built will be in Jerilderie where two would be available to the Murrumbidgee Local Health District on a long term lease and the others for council use and external renting.
The move would cost $1 million which council would fund from external sources.
During council's October meeting, general manager John Scarce said the focal aim is to create housing for essential workers, especially as a means to attract them for the future Coleambally Childcare Centre.
"We need to have accommodation and be able to tell workers housing is available to get people to come here, let alone any others," he said.
Mr Scarce said the EOI for the 17 dwellings in Darlington Point was scrapped owing to state government budget constraints.
"The country is screaming for housing and the NSW government scraps a regional program to which we had submitted an EOI for housing," Mr Scarce said.
"It was disappointing. There were many councils looking at obtaining grant funds to build critical worker housing... the response of the government was to look to the federal government for funds," Mr Scarce said.
Mr Scarce will be authorised to tender the construction of the four two bedroom homes in Jerilderie which will be built on Wunnamurra Estate.
A lease will also be entered into with the Murrumbidgee Local Health District (MLHD) for two of the homes and the final decision to build and internally finance will be upon resolution of Council and the award of tender for construction.
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