Vulnerable seniors and young people in the Oxley electorate will have access to new, fit-for-purpose social housing after the NSW Government announced $9.6 million in funding from the sale of ageing and unfit properties in Millers Point.

Twenty new social housing homes are planned for older people and young people at risk of homelessness in Kempsey and a further 16 new homes are planned in Wauchope, providing accommodation for seniors.

Member for Oxley Melinda Pavey said the NSW Government is committed to delivering purpose-built social housing for those who are doing it tough in rural and regional NSW.

"We are committed to breaking the cycle of disadvantage and delivering better social outcomes for our most vulnerable," Ms Pavey said.

"Our priority is creating more and better social housing through the Millers Point sales program. To date, we have built more than 1300 new homes."

Ms Pavey said the funding package would not only help house some of electorate's most vulnerable people but would also deliver a lifeline to the local economy.

"This investment in Kempsey and Wauchope will ensure local businesses are used, creating jobs during the construction phase which will in turn deliver a vital boost to the local economy."

These new homes are currently under design and subject to planning approval, will be delivered under the NSW Government's $22 billion Communities Plus building program which will see 23,500 social and affordable dwellings delivered across NSW over 10 years.