Odyssey House has run programs at Molyullah since 2005, with 15 beds available for those battling addiction.

A planning application to increase the number of beds to 35 was lodged with Benalla Council in September last year, followed by amended plans in March.

The application is yet to be determined, with councillors voting in March to defer their decision.

A six-week program is run at the property, offering treatment to between 110 and 130 people each year.

The development would allow two programs to be offered, including for a residential stay of between six to 12 months, which would allow about 60 additional people to receive treatment.

Manager Andrew Hick told The Border Mail there were a lack of beds in the region with those wanting help forced to wait for several months.

He said he had been frustrated at opposition to the plans, but was hopeful of reaching an amicable agreement.

The development application has been referred to the Victorian Civil and Administrative Tribunal due to the amount of time that has passed without a decision being made.

A three day hearing is set to start before the tribunal on September 27.

Eight objections were lodged to the first proposal last year.

Nearby residents said they were concerned about property devaluation and had safety concerns about the residents.

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"Many of the objections relate to the associated increase in residents utilising the drug and alcohol rehabilitation service," a council report noted.

But an online petition supporting the proposal has received more than 300 signatures.

Mr Hick said there were generally between 80 to 100 people on a waiting list for the service at all times, mostly North East residents, and said there were no safety issues.

"None of our residents have ever caused any problems for ourselves or our neighbours," he said.

"Police are never called and we've never had a violent incident on site.

"Anyone in local towns would have met our ex-residents, which they wouldn't know.

"They are our neighbours and our neighbours' kids.

"Sadly, sometimes they are our own kids."

A similar drug rehabilitation service which received funding in 2018 is under construction on Greta Road in Wangaratta.

It's hoped the new Wangaratta service will open this year.

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