Twenty-one residents could be homeless after the Department of Sustainability and Environment decided to close the Ballan Caledonian Caravan Park in July.

A group of locals, including businessman Paul Tatchell and Ballan Community Health Assistance manager Katie Talty, have come forward with a plan to build low-cost housing at the park.

Mr Howard, who raised the matter in state parliament on Tuesday, said the park was the only caravan park remaining in Ballan.

“I ask the minister to agree to meet with the mayor of Moorabool shire, Pat Griffin, and relevant business members of the Ballan community to discuss options which would allow the park to remain open,” Mr Howard said.

“As the park is on Crown land it would require the government to commit some funding to support the park’s infrastructure to see if there is a viable and sustainable future for it.

“(But) if you have got the shire and members of the Ballan community prepared to commit themselves in a range of ways, it is a great opportunity of having a win-win situation of keeping the caravan park open and DSE not having to commit a whole lot of energy in supporting that.”

The park, he said, had become a home to low-income earners, some of whom had been living in the park for 10 years.

The DSE, which manages the land for the state government, is evicting the tenants because the park does not comply with its permanent land-use policy.

However, Mr Howard said the rule was not appropriate for regional caravan parks such as Ballan.

A spokesperson for the Minister for Environment said their office received a call from Mr Tatchell yesterday.

“DSE will meet with Mr Tatchell to discuss his proposal,” she said. “It is standard practice for proposals to be presented to the department first.”