A development application, which will require the go ahead from the Joint Regional Panel due to the project's price tag, has been submitted to Albury Council in recent days for an affordable housing proposal consisting of 38 units between Olive and Kiewa streets.

Quamby House, a mens’ crisis accommodation centre, was closed to residents in 2013, but is still used by St Vincent de Paul for administration purposes.

Also proposed to be demolished is a property known as Orana Allanbie, an existing house fronting Olive Street and two sheds.

The 38 units will be a majority of one and two bedrooms with a single three-bedroom unit.

They will be owned and managed by Annelle Housing, a subsidiary of St Vincent de Paul, as affordable rental housing.

Amélie Housing chief executive Brian Murnane said the proposal would target people over 55.

“Our design incorporates a community centre we’ll be building with the generous bequest the society received from the late Justice John Nagle who had a long association with Albury,” Mr Murnane said.

“We lodged the development application with Albury Council, but it will be determined by the Southern Joint Regional Planning Panel.

"Council will assess the application, including any community input, and then report the application to the planning panel.”

The size of the bequest from Justice Nagle has not been disclosed.

He died in 2009, aged 96, after being a NSW Supreme Court judge from 1960 to 1983.

Murray Art Museum Albury is also a beneficiary of his generosity.

The development application submitted on behalf of Amelie Housing said there was a need to provide additional housing and services due to an growing demand.

"This has necessitated the need to review existing assets in order to review their ability to provide new housing for more Australians, including those who are homeless, elderly or most vulnerable and those who are in housing stress in the private rental market," the application states.

"The subject site provides an opportunity for St Vincent de Paul to meet the growing demands of its users through its redevelopment.

"This redevelopment will allow for the provision of additional residential accommodation and an ancillary community facility in a form that fits within the existing character of the area and responds to the site attributes and development controls applicable."

The proposed development site consists of six allotments with a combined total area of about 8000 square metres.

A total of 23 carparking spots to cater for the units and an additional 10 spaces for staff employed in the community facility plus visitors will be created.

A site manager and five other staff will be on site.