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Public housing windfall

It has been hinted at for months, and finally it has come through, Tasmania's $150 million public housing debt will be forgiven by the Commonwealth.

$15 million dollars is spent annually paying interest on the money owed, used for housing built last century, which is half of the pool of federal funding for the sector.

Colony 47's Danny Sutton has plenty of ideas about how the money could be used.

"Young people under 25 make up about a third of our social housing register, we actually think they have been left out in the design of the new social housing stock and we think we can use money like this to do some more innovative things around young people."

State Housing Minister Roger Jaensch will do the debt waiving paperwork with his federal counterpart Michael Sukkar.

"I'm really looking forward to welcoming Minister Sukkar back to Tasmania later this weekend, so we can sign the agreement that we've made together, which we believe is a great deal for Tasmania."

More than 3000 are on the public housing waiting list.