The land is owned by RSL Victoria, Baulderstone and Women's Housing Limited, which want to build the 30, two-bedroom town houses for women and children who find it hard to locate appropriate housing. It could include former prisoners.

The planning application has support from the Department of Human Services, which has recommended the project be funded under the social housing initiative of Prime Minister Kevin Rudd's stimulus package.

The application has been made to Mr Madden, who is the relevant authority, not Brimbank Council.

Sunshine Residents and Ratepayers Association president Darlene Reilly said the social housing site was too close to a pokies venue.

"We are outraged and shocked. It is a social disaster to put vulnerable women and children so close to the ringing of poker machines.

"I've looked at the plans and four of these units' walls will be touching those of the RSL's."

Ms Reilly said she believed more in a "salt and pepper" approach to social housing, where the houses are spread out among the community rather than placed all together.

A spokeswoman for Women's Housing Limited said the project was needed.

"This project will house people who are already living in the local community and who want to remain close to their family, friends and place of work.

"It is a mixed-income development that will house women on Centrelink income, women who may work part-time and others who work full-time."

Sunshine RSL president David Twidle reserved his right to comment until he knew more about the proposal.

The application has been referred to Brimbank Council, with Mr Madden asking it to submit its comments on the proposal within 14 days.

Acting city development general manager Leigh Harrison said the council was assessing the proposal to form its view on the matter.

"Any comment ahead of that would be premature."

As part of its preparation for the fast-tracked plan, the council held a community information session last night. See our website, www.the-advocate.com.au for updates.