The National Lottery has awarded residents £295,000 to help build a community centre in Portslade.
Work could start on the new Portslade South complex in June and it could be ready by the end of the year.
The Community Association of Portslade South received the good news from the community grant fund on Wednesday.
Derek Smith, chairman of the association, said: "We are really excited. When I got the news it really made my day."
The association was set up more than six years ago, following a survey to find out what was needed in the area.
It was decided to convert a large section of St Andrews Church, in Church Road, into a community centre while still leaving part of it for services.
The money is in addition to £350,000, which was given to the association following disruption caused in the area when a gas pipe was laid for the power station in Shoreham Harbour.
The association now has enough money to go ahead with phases one and two of the community hall, which involves developing a hall and kitchen downstairs and another big hall and meeting rooms upstairs.
Eventually, the association hopes to raise more money to add a community cafe.
Mr Smith said: "There is nowhere for young people or older people to have a meeting place.
"Maybe there will be a youth club starting in there and other organisations. We are hoping there will be a place for older people to meet, like a dinner club.
"The money means we can now start building the centre and, for next year, we can start getting people interested in organising their own projects and using the centre."
Sue John, Labour councillor for Portslade South, said: "I am absolutely delighted at the news. It is the number one priority for South Portslade."
Father Richard Rushforth, of St Andrew's Church, said: "It is great. We have been working on this project for years.
"This means it really can become real and we can look forward to the work being completed and the community centre being opened."
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