Announced on Friday by the state minister for water, property and housing, Melinda Pavey, six NSW cities will share in $41 million for the purpose of increasing homes for the vulnerable.

In particular, the 102 new dwellings will be targeted towards seniors, older women, and young people on the brink of homelessness.

Although it is unclear how many sites will be proposed for each, it is likely the full total will be divided between Dubbo, South Kempsey, Nowra, Queanbeyan East, Wauchope and Wagga.

The funding total arrived from the sale and decommission of unfit properties in Millers Point.

An additional 40 social and affordable private units will also be established in Tweed Heads, as per an announcement made earlier this year.

"Our priority is creating more and better social housing through the Millers Point sales program. To date, we have built more than 1300 new homes," Mrs Pavey said.

"By funding the development of new social and affordable properties in rural and regional areas, we can ensure local trade business are used, people are employed and the local economy receives the vital boost it needs," Mrs Pavey said.

Across the state, the NSW government has also committed $22 billion over 10 years to see 23,5000 new units replace existing social dwellings.