The Thompsons' home is at the rear of the largest block (block A) of the proposed development site and are concerned about losing their privacy.

"With balconies and large windows allowing people to overlook our property, not to mention the extreme overshadowing of the closely situated two storey building." Mr Thompson says he understands the necessity and importance of public housing from his 14-year role as a mental health welfare officer.

But he says this proposed development doesn't appear to have been designed with the existing residents' or proposed residents' needs in mind.

The Thompsons' will effectively have eight rear neighbours if the development goes ahead.

They are concerned about the noise generated from the 20 proposed units and troublesome neighbour relations.

"Looks great in the report to the Parliament but what is the reality?" Mr Thompson said in his letter.

"Where do the Housing manager's mum and dad live? Would you like your parents to live in small units with 19 immediate neighbours, stacked on top of each other?"

The copy of his letter was sent to Housing NSW, Worley Parsons, Greater Taree City Council, Member for Myall Lakes and the Manning River Times.