The lobby group's president Les Schmutter noted no proceeds from the $75,000, raised through the City2City run-walk in February last year and earmarked for Nolan House, had been spent yet.

On Friday, NSW Mental Health Minister Bronnie Taylor announced Nolan House would be replaced with new premises and an increase of beds from 24 to 32.

"My biggest concern is the likelihood of activity happening on the ground is not going to be for two to three years, so the immediate needs have to be well and truly catered for in that period," Mr Schmutter said.

"The evidence seems to say a lot of people are suffering, be it with COVID or bushfires or just general living, so there's going to be a lot of people in need.

"I can't imagine they're going to do any extensions...but there needs to be improvements to the outside facilities and areas because they're not conducive to people feeling in recovery."

IN OTHER NEWS:

Mr Schmutter said the $75,000 was sitting in limbo but Albury Wodonga Health project manager Gerard Coyle had told him some work would begin in weeks.

It had been anticipated money from the fun run and walk would help transform the Nolan House courtyard into a more appealing and therapeutic area.

City2City chairwoman Michelle Hudson said she had no explanation for why the event's funds had not been spent yet at Nolan House, but noted maternity ward work from fun run cash took a similar period to eventuate.

Meanwhile, Mr Schmutter said he expected his group will have input into the design of the new Nolan House.

"A lot of the people in the group and outside the group have had lived experience, either personally or through close associations with family or friends, so we would hope there would be consultation," he said.

Albury priest and Friends of Nolan House member Peter MacLeod-Miller is concerned at the lack of detail and timing for the new clinic.

"When it comes to mental health I have seen too many distressed justifiably angry people hosed down by new announcements and our community lulled into a false sense of security and even gratitude when we should have been demanding timeframes, results, independent monitoring and accountability," he said.

"While politicians and their delegates have spent years on the blueprints toward a long term solution a series of quiet tragedies whisper that local people have actually died waiting and will continue to do so."