The church and its surrounding land has been given to Centacare Tasmania, which will build seven two- bedroom units on the property.

Four of units - to be designed to satisfy six-star energy efficiency ratings - will be built on the land while the church will be converted into another three units.

The units will be made available to people on the Housing Tasmania waiting list.

Archbishop of Hobart Adrian Doyle said yesterday the move had been supported by parishioners in the Ravenswood area.

"This is a tangible demonstration of the church using its resources to assist the most disadvantaged in our community," Mr Doyle said.

The development is one of a number around the state thanks to the Rudd Government's Nation Building Economic Stimulus Plan.

Announced yesterday, Centacare has received $12million under the plan to build 78 units across the state, including units in Riverside and St Leonards.

Fifty-five units will be financed by the Government and the other 23 by Centacare.

Federal Housing Minister Tanya Plibersek said the initiative would boost Centacare's capacity to help Tasmanians in need.

"These properties will be designed to ensure they are more accessible to people who are ageing or living with disabilities," Ms Plibersek said.

She said 512 new social housing properties would be built in Tasmania under the stimulus package.

Human Services Minister Lin Thorp said the initiative would provide much needed housing to Tasmanians.

"This exciting partnership is about getting a roof over people's heads," Ms Thorp said.

The units are scheduled for completion in 2011.