Funds from the sale of units on Laurel Avenue owned by the Northern NSW Health District (NNSWLHD) will be used to upgrade the hospital's clinical services.

NNSWLHD chief executive Wayne Jones has responded to yesterday's story in The Lismore App saying that the units are "no longer fit for purpose".  

Read more: NSW Health's Laurel House sell off prompts social housing debate

"Northern NSW Local Health District has declared the block of 12 units in Laurel Avenue, known as Laurel Lodge, as surplus to requirements and available for sale," Mr Jones said. 

"While previously used for accommodation for junior doctors on rotation, it is no longer fit for purpose.  

"Funds from the sale of the property are earmarked for equipment upgrades to clinical services at Lismore Base Hospital; in particular, the cardiac catheter laboratory.  

Laurel House on Laurel Avenue.

Social housing

Lismore MP Janelle Saffin, who brought the sale of units to the attention of the community, has suggested the units could be repurposed to become social housing.

Ms Saffin said today she has not yet had a response from the NSW Government in regard to her proposal which she raised in Parliament.

Mr Jones said "a part of the sale process and as per standard practice, the property has been offered to other NSW agencies by the Department of Planning, Industry and Environment (DPIE)".

"interest was registered with DPIE, so the property has been declared surplus to Whole of Government and the sale endorsed," he said.

"NNSWLHD is progressing with the sale on the market in accordance with Government guidelines."