EVANDALE'S Missiondale Recovery Centre has received $500,000 of Commonwealth funding to be put towards the organisation's operational expenses.
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The announcement came on Thursday.
The drug and alcohol addiction treatment centre has 24 beds open to clients but there are hopes that in the future, they will be able to open 34 beds on site.
Launceston City Mission chief executive Stephen Brown said that with a six-week waiting list for those wanting to check into the centre, the funding would ensure that their 24 beds remain open.
"We have funded a significant amount of the burden here through our own social enterprise operations and that has become increasingly difficult," Mr Brown said.
"The announcement means that people in residential care here will become a really critical part of the integrated drug and alcohol services for the state and that's what the state needs.
"We do have a waiting list and so one of our other great dreams is to open all the beds here over time, this site has more capacity and we have greater opportunity, as the funding becomes available, to move the 24 beds to a higher number of beds to meet the demand."