A New Year lottery award of £100,000 means people in Much Marcle can look forward to an extended and refurbished village hall by next Christmas.
The windfall takes the total raised so far to £185,000. The target is £248,000.
Campaigners are now confident that work will begin after a final burst of fundraising in the early part of 2004.
Memorial hall management committee chairman Bob Dallow said: "This project has been three years in the planning but now looks likely to come to fruition during the next 12 months.
"The award of the lottery grant is thrilling news. This is just the boost we need to raise the balance of the funds required to get the project under way."
The Much Marcle Memorial Hall will be remodelled to provide a new meeting room, toilets and new entrance.
Mr Dallow added: "The upgrading of the existing building will include a proper heating system and insulation and will provide a warm, cosy and welcoming environment for the local residents. A new kitchen will be installed, together with a stage."
The new hall will house a youth club, a social centre for pensioners and a number of recreational and leisure classes.
On top of the lottery funding, Herefordshire Council has provided £25,000 and the Severn Waste Environmental Fund for Herefordshire and Worcestershire has given £10,000.
The Ledbury and Area Regeneration Partnership has donated a further £10,000 and Much Marcle Parish Council has given £3,500.
Mr Dallow said: "More has come from hall management committee funds and by the sustained efforts of local residents in organising fundraising events and from very generous donations from the local community and supporters of the hall."
These aspects of fundraising have added a further £31,500 to the campaign pot.
Mr Dallow said: "To raise the balance of £63,000 there are to be more local fundraising events including the Marcle Amateur Dramatic Society pantomime, Dick Whittington, in the hall on January 8, 9 and 10. Tickets are available from the village shop."
There will be an auction of promises at Ledbury Rugby Club on January 31, while in February local man Eric Bottomley will tackle a sponsored climb of Mount Kilimanjaro in Africa.
Applications for funding are also being made to other organisations, charities and trusts.
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