The $3 million base for community groups in the town has been given a $750,000 Lotteries Community Facilities grant, to go with a $1 million grant from the Central Lakes Trust earlier in the year.
"We're more than halfway towards our goal, which is good news, and we're really happy," Mrs Lepper said.
"If everything falls into place, fingers crossed, we could start work on the building in March, at the earliest."
The trust had lodged several other applications for funding and was waiting to hear the outcome of those but expected to know the results by early next year, she said.
Based in the grounds of St Enoch's Church in the centre of Alexandra, the building will replace the existing Church House building. It will house 10-12 permanent tenants, including the Alexandra Community Advice Network (formerly the Citizens Advice Bureau), Central Otago Support Link, Central Otago Budget Advisory Services and Central Otago Reap.
As well, it will provide a base for up to 40 other community groups or agencies on a casual basis.
The building tenants were well on the way to raising the balance of the funds, Mrs Lepper said.
Two-thirds of the $300,000 needed was already in hand or had been pledged by the tenants.
Prospective tenants had attended several workshops to establish the mission, values and strategic direction of the community house, she said.
"The vision for the Alexandra Community House is to provide a focal point to nurture and sustain wellbeing of all people, through arts, education and social services."
The facility would provide an opportunity for many non-profit groups to function together under one roof.