Work is under way on a $10 million housing development on a Mortlake Road block which would create another 32 dwellings for the city.
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The site, next to the indoor cricket and netball centre, would be made up of 18 apartments and 14 townhouses.
At least eight of the ground-floor apartments have been set aside as National Disability Insurance Scheme accommodation.
"Each apartment at ground floor level comprises one bedroom, a study area, a bathroom and an open-plan kitchen and living/meals area and are designed as NDIS accommodation," the application says.
The developer of special disability accommodation, Emerge Living's Nick Abbott, said he was working with genU to rents those apartments when the were finished.
The development is set to be completed by the end of the year.
The rest of the apartments would either be sold off or rented out but that was yet to be decided.
Mr Abbott said there was a huge need for appropriate accommodation for NDIS participants.
"There's still a large backlog in Warrnambool," he said.