THE Federal Government has tipped in more than $8 million to make new housing in the Tweed Shire more affordable.
Member for Richmond Justine Elliott said there was high demand for affordable housing but the community could grow thanks to the funding.
"In Tweed Heads we will now be able to undertake the construction of infrastructure works such as intersection upgrades, the creation of public parks, conservation areas, trunk works and earth works which are normally payable by the developer," Ms Elliott said.
"This will increase the number of affordable homes available for sale and rent and help alleviate local housing supply pressures.
"In the past, the cost of providing infrastructure for housing developments was borne by developers and local councils, which then contributed to the increase in the price of new homes and rising rents.
"Building Better Regional Cities is part of the Gillard Government's historic commitment to address housing affordability and help people stay connected to their communities. We are building better regional cities for a stronger, more sustainable Australia."
Housing and Homelessness Minister Brendan O'Connor said Tweed Shire Council would receive $8.362 million for local infrastructure projects to support new housing developments.
"We know that housing shortages are creating challenges in growing regional communities like Tweed Heads, now and into the future," said Mr O'Connor.
"Through Building Better Regional Cities, 16 communities across Australia will receive funding to help reduce the cost of local infrastructure needed for new housing developments, such as roads, bridges, water and sewerage works, parks and community centres, so that those savings are passed on to home buyers."
Regional Australia, Regional Development and the Local Government Minister Simon Crean said homes would become more affordable thanks to the funding.
"To have a stronger nation, we need stronger regions," Mr Crean said.
"We want to see these communities grow and we are working with local councils and developers to deliver more affordable homes for low and middle income families."