The former Wodonga South Primary School site on Jarrah Street was among surplus government sites across Victoria named during the 2018 announcement of the inclusionary housing pilot.

At least 100 social housing and dwellings will be built across the sites, to be developed by the private sector in partnership with a community housing provider.

Developers were shortlisted to deliver the project in 2019 and the 1.9-hectare site at Wodonga was rezoned from a public use zone to general residential zone in 2020.

Metricon is now conducting site investigation works prior to a pre-application discussion with the Department of Environment, Land, Water and Planning .

While DELWP is developing the site "in close consultation with local stakeholders", Benambra MP Bill Tilley raised a lack of input.

"It is concerning the government appears to have left out the local authorities in the process," he said.

"Despite the desperate need for these types of developments. I would like to see a more collaborative approach to this with inclusion of input from the local community and council in the planning."

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In October, a letter-box drop was done to inform residents the site was being redeveloped.

Metricon will be required to gain planning permit approval prior to commencing construction; the number and mix of dwellings will be determined through this process.

The Planning Minister Richard Wynne is responsible for the assessment of the planning permit application.