On Wednesday, CEO Frank Price met with federal MP Pat Conaghan, Kerry Pearse from the Housing Matters Action Group and Bellingen Shire Council's mayor and general manager to discuss this and other practical suggestions for addressing the housing crisis.

Related: Tackling Bellingen's coronavirus-induced housing affordability crisis

Oxley MP and NSW Minister for Housing Melinda Pavey was unable to attend as she was in Sydney for a sitting week of Parliament.

The RFBI proposal would see the former Bellorana aged care hostel on Watson St Bellingen, which has been serving as a drive-through COVID testing facility, refurbished to create 16 self-contained housing units.

CEO Frank Price said it would cater predominantly to older single women, who are finding it increasingly difficult to meet the private rental market for accommodation.

RFBI also owns land on Bowra St Bellingen (the former Bowling Club site) that could be developed into 10 housing units, alongside the retirement village it also plans to build there, while in Coffs Harbour, they have St Clair House near the private hospital that could be converted into 14 units.

In a letter sent to Melinda Pavey in September, RFBI said it would be contributing $15 million of land and housing stock and requested a partnership with government to make the proposals a reality.

With each unit costing between $200,000 to $250,000 to refurbish or build, Bellingen stands to gain 26 new homes if seed funding of $5.7 million can be obtained.

Asked for comment, Melinda Pavey said she was well aware of the Mid North Coast's housing issues, and she had invited her senior bureaucrats to the community earlier this year for a forum with key stakeholders.

"My department has met with the Royal Freemasons' Benevolent Institution and understands that they are developing a proposal which will help strengthen the opportunity to access additional funding sources," she said.

She noted that across this financial year and the next, the state government is committed to building 593 social housing dwellings in regional NSW.

Pat Conaghan said housing affordability needs an all-levels-of-government approach.

"This includes local councils' responsibility to open up previously unavailable land and cutting red tape," he said.

He noted that the federal government provides more than $6 billion each year to improve housing and homelessness.

"This includes, more than $4.6 billion in Commonwealth Rent Assistance to help eligible Australians pay their rent and around $1.6 billion through the National Housing and Homelessness Agreement to states and territories. This also includes $129 million in dedicated homelessness funding.

"I applaud the work carried out by the Royal Freemasons' Benevolent Institution and groups at the very coalface of homelessness including Housing Matters. And it's pleasing to see Bellingen Shire Council are not simply talking about the housing problem but are also finding real solutions."

At the meeting, Kerry Pearse presented the Housing Matters Action Group's plans to help make housing more affordable not just for low income earners, but also the moderate income earners who are being priced out of the rental and property market.

Her group is keen to pilot a Housing Hub, which would focus on the following strategic priorities:

Examples would include linking individual land owners interested in subdivision with potential local purchasers; helping locals navigate the planning system; developing immediate responses to the increase in homelessness, including a local lodgers program.

"This approach would be a national first as it is looking for ways to activate community solutions that are locally driven, in addition to much needed government policy and program responses," Kerry said.

She said the Housing Matters Action Group is very supportive of the RFBI proposal and are working with them and Bellingen Shire Council to progress it.

"Pat Conaghan seemed very interested in the Housing Hub proposal and is organising another meeting soon, along with Melinda Pavey," Kerry said.

"We are also in ongoing contact with Melinda Pavey and her office and are very pleased to see all levels of government working closely with our group of committed residents as well as the RFBI, a local NGO and charity."