Fifteen independent living villas will be completed by mid-2020 to help service the social and affordable housing needs of the Port Macquarie community.
The villas will be constructed on vacant land within the Uniting Mingaletta Port Macquarie precinct off Sherwood Road.
Funding is under the NSW government's social and affordable housing fund (SAHF).
Uniting's director property and housing Simon Furness says Tuesday's sod turning ceremony is a milestone mark for Uniting.
"It is a very important point for Uniting," he said. "Uniting believes in taking real steps to make the world a better place, we aim to inspire people, enliven communities and confront injustice through the delivery of wide-ranging services.
"As the services and advocacy arm of the Uniting Church - and along with residential care - we offer a range of other services within this vibrant and beautiful place that is Port Macquarie.
"Today marks the start of work on our new independent living village on the Uniting campus.
"The new village will include 15 one and two bedroom independent living villas. This is a first for villas of this kind in this area," he said.
"In creating this village we are further developing Uniting's Port Macquarie reputation as a truly integrated site offering a broad spectrum of services."
Importantly, the new village will enable Uniting to meet the increased needs for social and affordable homes in Port Macquarie, he said.
Member for Port Macquarie Leslie Williams said she was delighted to see the first sod turned on this quality new housing development.
"This will be of great benefit to our older residents," Mrs Williams said.
"The NSW government is working together with private and not-for-profit organisations to increase the supply of social and affordable homes.
"The SAHF gives people on the social housing waiting list and those seeking affordable housing with homes and links to services they need to work toward greater independence."
The SAHF was established in 2016 using seed capital from the NSW government, with 3400 new dwellings to be built under the program.
Mr Furness said Uniting - through the SAHF program - had been able to deliver some incredible success stories over the years.
"We have seen some fantastic stories of people living in quite unsafe accommodation and been able to - with a roof over their heads - reconnect with family, friends and re-enter the workforce," he said.
"Having a secure and safe roof over their head gives people the opportunity to also address their health issues."
Mr Furness also praised the local Uniting Church community.
"We are indeed fortunate to build on the incredible legacy of the early congregation members of the Uniting Church," he added.
Uniting Church Port Macquarie's Rev Malcolm Hausler praised the renewed focus of the Uniting Church to strengthen the bonds between the social arm of the church and the local congregations.
"It has always been part of the focus of the Uniting Church to look at ways in which it can attend to community needs," he said.
"This project is an example of that in the area of needed housing.
"This affordable housing project provides the opportunity for this focus to be developed with the local congregation and the other services in this vicinity, and lead to greater ways that we can all work together."
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