The project is proposing to make approximately 2,000 square metres of Council-owned land at the end of Eddy Court in Abbotsford available for the development of key worker housing. This affordable rental housing would be for people who work in Yarra in face-to-face roles.

Affordable housing is a broad term that describes “non-market” housing. It’s housing that has eligibility requirements, an allocation process and price setting requirements to help make it affordable and available to people who need it.

For this project, affordable housing refers to discounted rental housing for people who work in Yarra and who earn a low to moderate income.

There are many other types of affordable housing including public housing, community housing, discounted rentals, discounted purchase and shared equity schemes.

The first step in the process is this community consultation. After considering feedback, Council will decide whether to lease or sell the land or stop the project. If Council decides to proceed with either lease or sale of the land they will then run a formal process to select a development partner.

The development partner would be responsible for designing the building, obtaining planning approvals, raising the funds required, undertaking construction, and managing the affordable housing.

Based on the current schedule, should Council decide to proceed, the aim is to select a development partner by July 2026 and begin construction in the second half of 2027.

Council would select a development partner to build and manage the housing.

To ensure that the project represents benefit to the community and delivers something other than market-led housing, Council would seek a development partner with a commitment to developing housing that will accommodate different household sizes and make-ups including families.

The development partner would also need to demonstrate that they can create policies and processes that support people to sustain their tenancy while balancing this with the need to allocate the housing to eligible households.

It is anticipated that there will be a nominal fee for the lease or sale of the land. It would be a small payment, significantly less than market rates.

There will be a requirement on the development partner to pass on this cost saving by discounting rent for tenants by at least 25% of the market rent.

We know that housing affordability is a critical issue facing Australia, especially in inner city areas like Yarra. The rising cost of housing makes it difficult for people who work in Yarra to live here. This also makes it more difficult for businesses in the area to attract and retain staff.

This project would demonstrate how government land could be used to provide housing for people to work close to where they live at a price they can afford.

Making land available at a nominal rate means the cost saving for the development partner can be passed onto tenants through discounted rent.

This site is well located with public transport and pedestrian access to local businesses so people who would live in the development could easily get to work.

The site is also set back from the Collingwood Town Hall so it won’t impact on views to this landmark building.

As a development partner has not yet been appointed, we don’t know the exact details of what this space will look like when it’s built. However, should Council decide to proceed, we will require the development to be a high-quality building as a condition of the lease or transfer of land.

We’ve also identified key requirements for any future development to ensure it provides adequate benefit to the community. As part of these requirements, any future development will need to be:

• A well-designed building that provides opportunities for a range of household sizes
• A maximum building height of 25m (equivalent to 8 storeys)
• A minimum of 50 dwellings – helping at least 50 households
• For low to moderate income households that work in Yarra
• Designed to provide pedestrian access to Eddy Court Reserve, the Djerring Centre, and the Collingwood Town Hall
• Designed to include some parking for residents, but there is no requirement to replace the existing public parking

The housing will be for people who work in Yarra in face-to-face roles. It will be for single person households, couples, or families who are on low to moderate incomes.

As part of selecting perspective tenants, there will be eligibility requirements and an allocation process to ensure the process is fair, equitable and meets the goals of the project.

If this project proceeds, the land will be made available for lease or sale to a development partner who would take on responsibility for the design, planning permit, construction, and operation of the housing.

Council will not be involved in tenancy management or be responsible for property maintenance. This arrangement means there should be no ongoing cost to Council or ratepayers.

Council will require the affordable housing rents to be set at least 25% below market rent.

If the project is approved and once it is constructed, there will be a process for people to apply to rent an apartment.

If the project proceeds, it is estimated that construction would be completed in late 2028.

Before construction could begin, the development partner would need to design the building, obtain planning approvals, and secure funding.

If a development partner is appointed in July 2026, then it is anticipated they could have approvals and funding by July 2027 and construction could begin.

Council would contribute the land (via lease or sale) at a nominal rate.

The cost for designing, obtaining approvals, construction, and management would be the responsibility of the development partner. It is likely the development partner will seek grant funding from the State and Federal Governments and borrow money for the development.

If construction can begin in mid-2027, the apartments could be available towards the end of 2028.

No. The redevelopment of public housing towers is a State Government project and has no connection to whether this project proceeds or not.

Sections 114 and 115 set out that Council must give notice of its intention to lease or sell land and must undertake community consultation on the proposal. This community consultation has been designed to meet those requirements to ensure Council has considered community feedback before deciding on the project.

Council will consider community feedback on the lease or sale of the land at a Council Meeting in early 2026. This feedback will help Council decide whether to proceed with the project.