HOUSING NSW said yesterday the $7.3 million development of 22 affordable dwellings starting this week would be completed in early 2011 at Kelso.

A spokeperson for the department also said late yesterday the multi-million development was not part of the current Kelso public housing area that was earmarked in January for redevelopments costing over $4 million.

The 22 dwellings on Boyd Street would offer one and two-bedroom affordable rental homes for singles and couples in need, with emphasis on allocation to seniors.

"The units will see a change in the mix of social housing tenants in the area as they will be targeted at seniors to take advantage of the existing facilities for older people in the area," the spokesperson said.

"Additionally the site was identified as a suitable location for social housing tenants as key infrastructure is close by including transport and shops."

The spokesperson said the sale of units at Windradyne was an example of Housing NSW's strategy to realign its housing stock. Three and four-bedroom units at Windradyne no longer met the current demand for smaller social housing accommodation in the area.

With regard to the units about to be built the spokesperson said an initial meeting had been held with Bathurst Regional Council last june to discuss plans for Boyd Street development with a further meeting arranged in October last year.

As part of the consultation process Housing NSW gave council and adjoining neighbours 21 days from November 13 to lodge submissions concerning the proposed development plans for Boyd Street. Submissions made during the notification period were sent to an external accredited planning firm who were legally bound to comply with all statutory and non-statutory requirements.