One of Hobart's oldest public housing unit complexes is set to get a new lease of life.

The Minister for Human Services, Cassy O'Connor, today announced a $5 million State Government funded redevelopment of Stainforth Court , with work in the complex due to be completed by December 2013.

"This is an exciting step forward in delivering significantly improved facilities for residents in the newly-refurbished buildings as well as increased access to services," she said.

"Stainforth Court tenancies will be managed by Housing Choices Tasmania. Housing Choices Tasmania already manages a number of properties on behalf of Housing Tasmania, and has a strong track record in helping connect our tenants with the services and support they may need.

"I'm confident this redevelopment will greatly improve the quality of accommodation at Stainforth Court to bring this 1950's building into the 21st century, as well as extending the life of the site."

Ms O'Connor said last year's expression of interest process showed that a mixed development including 20 affordable housing units was not viable in the current financial climate.

"While it's disappointing we were unable to proceed through that process, this option does present advantages - including maintaining the current 81 units of accommodation, whereas other redevelopments proposed a reduction of homes," she said.

Ms O'Connor said Housing Tasmania would advertise the redevelopment tender this weekend.

"As the redevelopment proceeds, we will work with all residents to find another public housing placement ahead of the anticipated start of construction works next April," she said.

"We will also pay for removal costs and utility start-up costs for residents in their new home."

Ms O'Connor said that Housing Tasmania had written to Stainforth Court residents to advise them of the redevelopment and plans to find them another home.

"We will ensure residents are kept fully informed and Housing Tasmania will be in further contact with each resident in the next fortnight to begin discussing alternative accommodation," she said.

"The redevelopment of Stainforth Court is part of the Government's broader affordable and social housing strategy, by working to ensure sustainable, affordable housing for Tasmanians on low incomes."

Interested contractors and consultants need to be pre-qualified with the Department of Treasury and Finance to tender for projects under the Building Works Residential/Institutional Category at or above $5 million.

The tender process for the construction project will close on 2pm Wednesday 5 December 2012, with tender details to be made available on the Tasmanian Government's tenders website www.tenders.tas.gov.au