Ms Washington has called on the government to utilise the now-empty lodge building site in Shoal Bay to accommodate local homeless families until the community consultation process for longer term uses begins.

"The purpose-built accommodation at Tomaree Lodge could easily serve as short-term emergency housing for those at risk of homelessness," she said.

"We have a housing crisis in Port Stephens. The cost of housing is skyrocketing and local families with perfect rental histories can't find a home to live in. At the same time local service providers are desperate to find more short-term emergency accommodation so that people don't end up on the street."

She said that some families were sleeping in their cars, pitching tents, or couch-surfing. "The current situation is unsustainable, and as a community we need to support these families so they can keep their jobs, so their kids can get to school, and so their health and mental health doesn't deteriorate."

Parliamentary Secretary for the Hunter Taylor Martin reiterated that the government has committed to Tomaree Lodge remaining in public hands.

"An assessment of the condition of Tomaree Lodge is being undertaken to inform decisions regarding future use of the site," he said. "There is currently 24/7 security presence on site at Tomaree Lodge. The boom gate entry for cars can only be operated by the onsite security personal."

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The Yacaaba Centre and Port Stephens Family and Neighbourhood Service have endorsed Ms Washington's proposal, while the Shoal Bay Community Association has called for a range of logistical issues to be addressed prior to any future use.

SBCA chairman Tim Meharg said that security was important due to the site's remoteness, as would be the accessibility of vehicles, occupants and any support staff.

"As some of the units have not been used for some time, safety audits should be undertaken on infrastructure including electrical systems and considerations should be given to the safety of children if allowed on site."

He said that a termination agreement needed to be addressed before access to the accommodation was granted, and urged the government to urgently appoint a person or organisation to manage the site and provide funding for maintenance.

Ms Washington said that she had written to Ministers Melinda Pavey (Housing) and Alister Henskens (Families & Disabilities), regarding the long-term future of the site.

"Prior to the last election, your government committed to three things in relation to the Tomaree Lodge site: keeping the site in public hands; maintaining community use; and maintaining open space," she said.

"On behalf of my community, I would like to understand the government's proposed process to determine the future of this unique site. Specifically, what is the government's timeline, how will community be involved in the process, who will make the final decision, what entity will be ultimately responsible for the site and what environmental/planning constraints will be enforced?

"My community does not want this heritage site to fall into disrepair or worse, be damaged or destroyed."

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