The state government has offered councils $30 million in funding on condition they maketake efforts to permit more homes, to bust the state's housing crisis.
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Some 21 regional councils, including Tamworth Regional Council, are eligible to apply for funding through the $30 million Regional Housing Fund.
But to be eligible, councils must adopt changes designed to get more homes approved.
Tamworth's mayor Russell Webb said the housing crisis is as much about a lack of staff to process development applications as it is infrastructure funding.
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"I'm happy that government's identified some of the issues and some of the shortfalls in terms of the way we can provide good outcomes for subdivisions," he said.
"But one of the biggest challenges we're facing at the moment is finding people to do the work. In terms of Tamworth Regional Council we're very short staffed in our planning and development areas."
The scheme comes in response to the recommendations of Regional Housing Taskforce, which was established by the state government last July to advise it how to remove barriers in the way of developing affordable housing in rural NSW.
Minister for Planning and Homes Anthony Roberts said the grants would fund the parks, kerbs, guttering and new roads councils would need to build to cater for new estates.
In order to qualify, councils will need to prepare and implement plans to address the taskforce's recommendations at a local level, such as updating infrastructure contributions plans and housing strategies, he said.
Cr Webb said any additional money was welcome, but money wasn't the only factor involved in making housing happen.
Councils all over NSW are struggling to employ trained planners with the skills required to approve developments under the state's complex planning rules, he said.
Tamworth MP Kevin Anderson encouraged the local council to put its hand up for some of the cash.
"We need to build new homes now and the NSW Government is looking to support this growth by supplying councils with funding for new infrastructure and public space to help unlock new housing," he said.
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