Shoalhaven City Council has moved forward in its affordable housing strategy and is working with the NSW Department of Communities and Justice to build long-term affordable housing in Coomea Street, Bomaderry.
At the strategy and assets meeting on June 9 council unanimously voted to gift the land and buildings worth $1,749,000 to Southern Cross Housing.
Mayor Amanda Findley said she was excited to get the project "up and flying".
"I know this doesn't mean we're building this tomorrow but it certainly brings it one step closer," Cr Findley said.
"The opportunities that will unleash from this will be really important for the community.
"It's a big piece of joy after five months of really bad news."
Deputy Mayor Patricia White said council can finally move the project forward.
"I think this is one of the most important recommendations council has looked at," she said.
"I'm really glad to see this recommendation come to council.
"We're going to see something in Bomaderry that's extraordinary to look at and we're going to help a lot of our community out with affordable housing."
Shoalhaven City Council began working on its affordable housing plan for Bomaderry in 2017 and was adopted the year after.
The site at Coomea Street was selected because of its proximity to services and public transport.