At its April council meeting, Yarriambiack Shire councillors approved a $500,000 loan application for the project.

Yarriambiack Shire council chief executive Jessie Holmes said this project is vital for housing in Yarriambiack.

"The project is an important piece of the housing jigsaw puzzle in Yarriambiack," Ms Holmes said.

"It addresses the matter of affordable community housing that many of our communities have raised over the years of consultation.

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"The benefits will be that our ageing population will be able to remain in their community by having access to appropriate, affordable housing."

The housing project will focus on affordable housing in Woomelang and Murtoa.

"We now await Local Government Victoria's processing of the Community Loan Application and also await a decision from the Big Build Housing Authority in relation to our larger proposal requesting $2.8 million towards 14 affordable dwellings," Ms Holmes said.

The CEO confirmed the loan repayments would be made from accommodation payments, not ratepayers money.

The project's estimated total cost will be $4 million.

Affordable housing has been found to be an issue across the region by the Wimmera Development Association Housing Study and the Wimmera Southern Mallee Regional Planning Policy Framework.

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