Council is proposing to lease 44 – 60 Curzon Street, North Melbourne and 325 – 341 Victoria Street, West Melbourne for the purpose of affordable housing. If the projects proceed, we would partner with an external community housing provider to deliver and manage the project.

The City of Melbourne has a strong commitment to delivering affordable housing across the municipality, as outlined in the Affordable Housing Strategy 2020 – 2030. This commitment includes the delivery of affordable housing of Council land through partnerships.

The demand of new affordable housing is significantly higher than supply, and there is an urgent need to take action. The City of Melbourne currently estimates the city has a shortfall of over 6,000 affordable homes and this is likely to increase to 23,000 by 2036.

Every Melburnian deserves a safe place to call home and projects like these will increase the supply of housing in the City of Melbourne.

If the project proceeds, Council would call for proposals that are well-designed, sustainable and integrate with the surrounding neighbourhood.

Both sites currently have height restrictions of 10.5 metres (2-3 storeys). It is possible that these height restrictions could be exceeded if certain design criteria are met. This would be considered through a future planning permit application process.

If the project proceeds, Council would partner with a community housing provider who would be responsible for securing funding to deliver and manage the project. Council’s contribution to the development would be the land under a long-term lease.

Consultation is taking place from 1 May – 30 May.

If Council decides to go ahead to lease the land, the next steps for the future development will commence later in 2024. For more information, read the Timeline on Participate Melbourne.

The community is being consulted by a range of methods:

• letterbox drop to all residents/owners/businesses within 500 metres of each site.
• intercept surveys and online survey
• postcards
• posters
• people are invited to call us if they have any questions or comments
• social media updates
• a project page on Participate Melbourne
• four in-person and online information sessions

Affordable housing is housing for people on moderate or lower incomes. Affordable housing is not ‘cheap’ or of a poorer standard – it is quality, fit-for purpose housing, priced at a level which is affordable relative to the income of its occupants. At City of Melbourne, we use the definition of affordable housing provided by Victoria’s Planning and Environment Act 1987, which states that: “Affordable housing is housing, including social housing, that is appropriate for the housing needs of very low, low, and moderate income households” (Victorian Planning & Environment Act, 1987)

The term ‘affordable housing’ is often confused with ‘social housing’ and ‘community housing’, as these terms overlap. Affordable housing is a broad term that includes:

• Social housing – a broad term that includes public housing and community housing
• Public housing – long-term rental housing owned and managed by state governments. Community housing – long-term rental housing owned and/or managed by community housing organisations
• Subsidised market housing – housing that is provided by the private market through a number of possible subsidy arrangements. Subsidies may support rental or ownership models.

Affordable housing helps support people on low incomes by providing housing at below the market rate – enhancing liveability in our city, the diversity of our community and the productivity of our economy.

There is on-street car parking available in the areas surrounding both car parks.

A car parking report from 2021 (and reassessed in 2024) assessed the impact of the removal of both car parks and found that even at the busiest times, there are likely to be around 4,200 unoccupied parking spaces available in the broader North Melbourne West Melbourne area.

In 2022, Council sought feedback from the community on the proposal to use the Curzon Street site for affordable housing. A majority of respondents, 76 per cent, support affordable housing and want to see more of it integrated throughout the City of Melbourne. Respondents identified a range of benefits of affordable housing including addressing the broader need for affordable housing and providing housing diversity to the area. Some respondents reported concern over the availability of parking in the area and about the negative social impacts an affordable housing development could have on the area.

These sites were identified as suitable for affordable housing because of their location, their proximity to public transport and amenities and as an opportunity to maximise under-utilised space. Affordable housing at these sites supports communities of mixed economic and social status, enhancing diversity, liveability and productivity of our economy.

Council has adopted an Affordable Housing Strategy 2020-2030. Priority 1 of the strategy commits to ‘Deliver more affordable rental housing on City of Melbourne-owned land. [To] use City of Melbourne-owned land to increase the supply of affordable rental housing. [Council] will trial and showcase alternative and innovative housing models and partner with key stakeholders across sectors to achieve the best possible development outcome.’

Council is engaging traders, workers, residents, shoppers, visitors, car park users in and around the Curzon Street car park area. People are invited to fill out an online survey on Participate Melbourne or attend a drop in or online session.