The youth hub/family community centre project has taken a further step forward following the announcement from the Federal Member for Cowper Pat Conaghan and State Member for Oxley Melinda Pavey of $7 million in funding to complete the centre.

The community hub will be located at the former Kempsey Ambulance Station on Belgrave St and will provide 24-hour support for local youth, young mothers and children escaping domestic violence and homelessness.

Read more: Former Kempsey Ambulance Station to become community centre

Federal Member for Cowper Pat Conaghan said Kempsey youth in need deserved better services and the Federal Nationals Government would provide it through a major $6.5 million investment for the centre.

"Our young people are our future and I often see youth here in Kempsey suffering from family and domestic violence, homelessness and other challenges," he said.

"A lot of work has gone into this project and we know how important it is for the Kempsey community."

Mr Conaghan said the centre will help tackle the issue of homelessness in the community.

"In Kempsey there are 50 unmet beds for youth, this centre will help give temporary accommodation support to people who are homeless," he said.

"It will also provide a safe place for people escaping domestic violence situations."

The hub will also be home to a community kitchen, allowing community groups and individuals to cook for and teach the more at risk members of the community.

"The kitchen is at the heart of this centre and will be used to teach life skills to at risk youth in the community," NSW Minister for Housing and State Member for Oxley Melinda Pavey said.

Principal of the Macleay Vocational College Mark Morrison said utilising the former Kempsey Ambulance Station sends a positive message to the community.

"When the building was used as an ambulance station it was 24-hour around the clock support and to now have a community centre on that site that will also provide 24-hour support is wonderful," he said.

"We do need a 24-hour community support centre in Kempsey and we need a space for young teenagers to go.

"The Kempsey community is one of the most generous I've ever seen and the kitchen will allow a space for locals to come and cook and show people living at the centre life skills."

Mrs Pavey said the centre will be more than crisis accommodation and will also offer important wrap around services to ensure occupants are supported.

"The hub will provide safe and secure temporary accommodation with a 24/7 on site caretaker who will coordinate services and supports for individuals to help them retain their self-worth and transition to independence," she said.

"It will also link young people to additional services they may require such as mental health outreach services, drug and alcohol programs or financial and life skills counselling."

A development application for the youth hub/family community centre is currently on exhibition through Kempsey Shire Council. It is proposed to have up to 24 rooms for crisis accommodation, as well as a common area for youth activities and a café.

The Australian Government is providing a $6.5 million investment to deliver the youth hub/family community centre and the NSW Government is also providing $500,000 towards the project and the land at 85 Belgrave St, Kempsey.

Demolishing of the former Kempsey Ambulance Station and the construction of the community hub is set to begin early next year.