The state government is exploring opportunities in Central to deliver mixed communities in a bid to bust impoverished areas, but not all support the move.
These communities would see subsidised houses becoming integrated with private ownership to break the cycle of poverty that has seen successive generations of families relying on government-provided housing.
The Daily Advertiser previously reported that a site in Wagga at Wiradjuri Crescent was under interest for the public housing reform, but a spokesperson from the Department of Family and Community Services remained tight-lipped about specific locations across the city.
"The NSW government is driving integrated communities of social, private and affordable housing in line with Future Directions for Social Housing in NSW strategy," the spokesperson said.
"Opportunities are being explored which underpins the Communities Plus program to deliver mixed communities in Wagga Wagga close to shops and services.
"The value of well-designed mixed tenure communities and redevelopments is well documented."
The spokesperson referenced multiple reports by the Australian Housing and Urban Research that support the concept for the delivery of improved social outcomes.
However, Wagga Neighbourhood Watch president Wayne Deaner expressed his concern and questioned whether the community would support this move.
"I think it's a bit of a handball by FACS instead of looking at the real issue," Mr Deaner said.
"It's a step in the right direction, however I think it would be easier for FACS to take more responsibility with their tenants and the concerns of their neighbours and the neighbourhood.
"I think the community would be very reserved and they would need a lot more information concerning this."
Latest FACS data shows that 221 people in Wagga were housed between 2017 to 2018, with more than 1400 people supported into private rental accommodation across the Murrumbidgee region over the same period.
There are 318 Wagga people currently on the NSW housing register among 48,337 in the state.
Through the Social Affordable and Housing Fund, 57 social and affordable properties will also be delivered in the Riverina.
One bedroom units are the most popular housing types with 503 properties across the region, which incur a two to five year wait list.
Wagga City Council welcomed any plans by the state government to improve the welfare of minority groups in society.
"Council supports any state or private development that provides choice to the community through a mix of quality and affordable housing options," said, director of community, Janice Summerhayes.
"Any state renewal plan for public housing that improves the livability of the city and quality of life for the community is also welcomed."