Not-for-profit social enterprise, Head Start Homes selected Port Macquarie in December last year because of unaffordable rental market prices and exacerbated social housing waiting lists.

Under the program, community housing tenants will be empowered to attain home ownership through coaching, assistance with bank negotiations and help with first home deposits.

Head Start Homes founder and managing director Stephen Woodlands, who has been working on the project for four years, said early stages are taking place in Port Macquarie and Adelaide.

"There's now a 20 year wait to get into community and social housing in Port Macquarie," said Mr Woodlands.

"One of the key drivers for that is that people aren't transitioning out of social housing because the private rental system is broken. It's much more unstable than what community housing is.

"If you are on a lower income and you are paying market rent, then you effectively have no ability to save for deposit in home ownership.

"We recognise that today the majority of first home buyers are getting into the market with the support of mum and dad. We recognise that if you're on a lower income and don't have that support you don't have the same opportunity in home ownership.

"So we are trying to jump in and help people who are employed, doing well but can't get out of community housing because of the deposit barrier. We act as parents in providing security to the bank and provide cash that sits with the bank in a term deposit account."

The program supplies the necessary deposit needed for a home loan, provided the home loan applicant has evidence of budgeting, a savings buffer and coaching for home ownership.

The Affordable Housing Income Gap Report released in 2018 listed the median rent in Port Macquarie as $390 and listed the weekly income needed to avoid housing stress as $1300. The median household income per week at the time was $1148.

In dollar terms, median renting households in Port Macquarie had to find an extra $152 per week to avoid renter stress.

"We believe empowered individuals can make the best decisions for their own lives," said Mr Woodlands.

"An average deposit we provide would be about $75,000 and if there's no default that comes back to us within three to seven years plus interest to use for someone else.

"That's a multiplier effect for ending poverty because the capital we raise will stay in the system. Everyone we start in their own home, we free up a social housing home for someone on the wait list.

"As a charity we back these people and the social benefits of home ownership. Home ownership is a proven way to end inter-generational poverty because home owners have something to rely on in retirement and they can hand that on to their kids."

Head Start Homes was among 100 community organisations across Australia to receive $10,000 in funding grants from the Westpac Foundation Community Grant program.

While you're with us, you can now receive updates straight to your inbox from the Port Macquarie News. To make sure you're up to date with all the news, SIGN UP HERE.