Through a new Wollongong City Council scheme, those eligible on low to moderate incomes will be able to apply for up to $75,000 for a deposit on a new house in the latest West Dapto housing release area.

Funded though the federal government’s Building Better Regional Cities program, the $9.2 million fund will help 123 families to move to the area over the next three years; 27 grants will be available  this year.

Lord Mayor Gordon Bradbery said the scheme would help those who thought they would never be able to buy their own home achieve the ‘‘great Australian dream’’.

‘‘In this climate, where housing prices are so high and demands and costs of living are so high... it will assist people who just need that little opportunity to get across the line,’’ he said.

‘‘Struggling to get a deposit together while being on a low income, paying rent and trying to feed yourself and buy clothing and so on really eats into your ability to save.

‘‘This gives people the opportunity to get into their own home so what they would otherwise be paying in rent will actually be theirs.

‘‘One of the great Australian dreams is to own your own home, so we are providing people with that opportunity.’’

Through the program, singles, couples or families who earn under a specified amount  will be able to apply for a 20per cent deposit on house and land packages worth up to $375,000.

Wollongong residents of all ages can apply and first-home buyers will also be eligible for the state government’s first home owners grant.

Once each property’s value increases and a large enough part of the loan is paid off, the original 123 deposits will be returned to the council and recycled to help other lower-income earners to purchase their home.

The council estimates this will help nearly 300 families buy a home in West Dapto over the next 15 years.

Cr Bradbery stressed that the scheme was not a ‘‘handout’’, saying those applying for the program would need to meet strict criteria.

Home loans will be provided by the IMB, which will also require applicants to meet normal loan requirements.

‘‘This is no cheap handout, this is for people who are really prepared to knuckle down and who are prepared to work with us in this process, so we’re not just dishing it out in an easy way,’’ he said.

‘‘But those who are determined enough deserve the care and the help we can give them.’’

The program would also help free up rental properties in the Illawarra’s tight market, he said.

‘‘If we can get more people into their own homes, it also releases other rental properties to make it available for those who can’t get into a rental property,’’ Cr Bradbery said.

‘‘In the first round alone, that will be 27 rental properties we free up.’’

The council is yet to confirm the full list of eligibility requirements and application process, but Cr Bradbery said he thought a first-in, first-to-be-eligible basis would be the fairest way to run the program.

At next week’s council meeting, councillors will vote to put the grant proposal on public exhibition for 28 days, which will allow the money to be included in the council’s annual plan.

Household income limit

• One adult  $45,956

• Two adults  $63,535

• Sole parent with one child  $63,579

• Sole parent with two children  $78,822

• Couple with one child  $78,778

• Couple with two children  $94,021