A derelict building in Brisbane’s inner south will be razed and transformed into a $44 million social housing project built at cost by the developer.

Grocon has agreed to develop the site without profit in a bid to conquer homelessness, providing the government stumps up its side of the bargain — $40 million in funding.

The purpose-built, assisted-living 146-apartment complex is based on the Common Ground model, which adopts a ‘whole of community’ approach.

Clients move into their own new units, enter into rental agreements and pay rent. They are then supported with a range of services to help them keep their tenancies, regain stability in their lives and participate more fully in their community.

Architecture can drive social change, Common Ground architect Tony Giannone said. “You create a space that is uplifting, with lots of natural light and ventilation, and when the tenants walk in they feel refreshed and ready to face the world again,” he said.

"Common Ground is an example of 'wrap around' services for homeless Australians, delivering integrated services that deal with the complex needs of chronically homeless people," Karen Struthers, Queensland’s minister for housing, said.

"This funding will support the ongoing services essential to the Common Ground model, including real 24 hour on-site support to help people maintain their tenancies."

Struthers said a high level steering committee was being set up to spearhead the drive.

"We'll ask Micah Projects to step back from the building project, take off their 'advocacy hat' and join the field of interested and qualified potential providers so that we can ensure a clear and transparent process."

"We need to all work together with a shared goal - to end homelessness. Nothing is more important than that," she said.