It's the second social housing project to cause a stir among Sunshine residents in as many weeks. Planning Minister Justin Madden will decide soon on a proposal to build 30, two-bedroom townhouses for disadvantaged women at the Sunshine RSL.

HomeGround Services chief executive Stephen Nash confirmed it had put forward a proposal for the 158 units at the three-tower site on Harvester Road. But a decision on funding, which will probably be through the Federal Government's stimulus package, has not yet been made.

"There is a desperate need for both common ground [supportive housing] and affordable housing to relieve housing stress and prevent even more people from becoming homeless in the future," Mr Nash said.

His proposal includes 130 units for younger homeless people and another 28 for older, long-term homeless, all in the one building. "There will be comprehensive on-site support services, 24-hour, seven-days-a-week concierge, controlled access and a thriving, mixed community of residents," Mr Nash said.

HomeGround also has a separate proposal for 100 affordable housing units in a third building on the same site.

Residents at a public meeting called to discuss the RSL siting heard about the HomeGround proposal and were sceptical. One resident said: "Isn't this just the same as the old commission flats in areas like Collingwood and Carlton? Surely we have learnt from these mistakes of creating ghettos for our disadvantaged people."

Mr Nash said that given the need in the area, Brimbank Council had supported the project.

However, the council's community wellbeing general manager, Kelly Grigsby, was cautious.

"While council did communicate with HomeGround earlier this year, this was a general letter around the topic of social and affordable housing," she said. "It would be incorrect to say the council's letter supported a proposal to build 130 'common ground' units at this site."

The original permit granted for the three-tower site would need to be amended. The permit was granted for one residential tower, one for office space, and the third for shops.

The council's acting city development general manager, Leigh Harrison, said there were no amendments to the permit. "Any significant change ... would require an amended planning permit application to be lodged with VCAT."