Baptist Community Services (BCS) informed residents last week it would not be renewing its lease on the village when it expires in November 2012.

Mr Davis - the village's longest-serving resident - said he was bitterly disappointed to learn that he would be forced out of his home.

"I'm pretty sad I have to leave because I'm so used to this place and I put a lot of work into this place," he said.

"The other residents are a bit confused too because they're not used to worrying about having a roof over their heads."

Baptist Community Services leases the land and buildings from Griffith City Council and said it could not afford to maintain the village and its 30-odd units.

"The Kookora Village buildings are at least 40 years old and they're really debilitated and no longer suitable for housing," a spokeswoman said.

"BCS is not-for-profit and unable to put any further capital into the premises - we just don't have the financial resources to do that."

The spokeswoman said the service would do everything possible to ensure the village's residents were relocated to suitable alternative accommodation.

"It's really been our privilege to be able to provide accommodation for these residents and the well-being of the residents remains our top priority," she said.

"We're committed to ensuring all residents of the village are relocated as easily as possible and we will accept full responsibility for the sourcing of new accommodation and the cost of relocating them."

Mr Davis said residents were heartened by the offer, but he feared many would struggle to afford higher rents.

"They're going to pay for removalists and all that so they're very good about that part and making sure everyone has a place to go," he said.

"But it's not going to be cheaper than this. It's pretty dear out there and I think some of the rent is about $200 or $250 a week and that's a lot if you're on a pension."