The new development, on the former St John's Bowls Club site off Princess Street, will provide 13 new units for pensioners. A smaller neighbouring parcel of land, off Manifold Street, also makes up part of the site.

It is not the only development Heatherlie Homes has in the pipeline.

Chairman Charlie Armitstead revealed a large parcel of land behind Merri Street opposite the railway station had been secured for a potential 30-unit development, but it could be up to five years before it was developed.

The designs for the bowls site redevelopment were being lodged with Warrnambool City Council for planning approval and include nine single-bedroom and four two-bedroom units.

Heatherlie Homes bought the land about five or six years ago for $1.2 million.

Mr Armitstead said the ambition was always to build units within walking distance to the CBD. "It's been a long time coming," he said.

Project convenor Vern Robson said work on the project was delayed due to the pandemic, but it had now been fast-tracked in an effort to capitalise on potential Federal Government grants.

Mr Robson said they were invited by Wannon MP Dan Tehan to apply for up to $750,000 in federal funding towards the project through the Building Better Regions grants. Applications close early March.

Provided they project gets the green light from the council, they hope to begin awarding contracts for construction by July.

Mr Robson said there was a heritage overlay on the area, and the new development had been designed to fit in with the historical church buildings that surround it.

The development was also single-storey to cater for the residents, many of which used motorised scooters.

It's the sixth development Heatherlie Homes has undertaken since its first development on Koroit Street was officially opened in 1979.

"It's pretty impressive really what we've been able to achieve," Mr Robson said.

"It's an exciting project in that we'll be seeking tenders from local building contractors. That's always been Heatherlie's philosophy, to use local builders."

The Uniting Church has committed $500,000 to the project enabled by the volunteer efforts of workers at its Liebig Street Op Shop.

Local philanthropic trusts have already committed $280,000 and Heatherlie itself will contribute $1.25 million.

Mr Robson said the government grant would allow Heatherlie to help people in "necessitous circumstances".

"The housing waiting lists are into the hundreds. There are so many people on the housing waiting list including those that are in the pensioner age group," he said.

"Many of them just haven't got the money to be able to go into rental accommodation, so they need something like what Heatherlie Homes provides."

"We're probably not going to have enough units to fulfil the ones on waiting lists but at the same time at least Heatherlie is trying to do something constructive.

"We're hoping with the money we'll hopefully receive from the Federal Government we'll get the project away as quickly as possible."

Heatherlie provides independent living accommodation to pensioners and under the arrangements they allow residents to stay there for the rest of their lives or until the need to go into higher care.

"The average for most of our residents is they stay there for 20 years. We've got a number of current residents in their 90s," Mr Robson said.

"They're almost a family in support structure for one another. It's just the way Heatherlie has developed."

Mr Robson said Heatherlie Homes was a unique project and now provided almost 100 units.

He said the late Archie Graham and Jack Hazeldine were behind the idea to turn the land near the Uniting Church - which he described as virtually just a rubbish trip in the heart of Warrnambool - into charitable accommodation.

"The Uniting Church has to be given credit. They started stage one but they also involved all the other Christian denominations in Warrnambool. It's been tremendous over the years," he said.

"It's a really good news story."

Mr Robson said they were already getting applications for the units. "I don't think we'll have any problem filling them," he said.

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