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Media Release

6 July 2009

Construction set to begin on Fitzroy affordable housing project

Construction of a $4.7 million Fitzroy building which will provide affordable housing for people on low incomes will begin later this month, with Yarra City Council making a contribution towards the Yarra Community Housing-managed project.

To be completed by mid- 2010, the four-storey building at 36 Gertrude Street will house 19 studio apartments that will be rented out to single people on low incomes.

Nine of the apartments will be allocated for single people who earn less than $30,000 per annum, while the remaining 10 apartments will be provided for single people who receive Centrelink benefits.

City of Yarra Mayor Cr Amanda Stone said Council was providing $400,000 towards the project, as part of its aim to ensure the City of Yarra remained a socially-inclusive community.

“One of the great things about living in Yarra is the sharing of ideas and perspectives which comes from having a mix of people from different economic and cultural backgrounds,” Cr Stone said.

“With this project and others like it, we are doing our part to make sure people on low incomes aren’t driven out by rising property and rental prices,” she said.

Yarra Community Housing CEO Rob Leslie said the Fitzroy project, which was also receiving State and Federal Government funding, would be helping a population group at real risk of homelessness.

“Single people on low incomes who want to live near their social networks in the inner city face enormous difficulties in getting affordable rental accommodation in the inner city because of the limited supply of one-bedroom dwellings,” Mr Leslie said.

“The project’s tenants will be able to live happier, less stressful lives, with their housing costs making up no more than 30% of their incomes.”

Yarra Council’s contribution towards the project came from the Yarra Affordable Rental Housing Development Fund, which was established as part of Council’s 2008/09 budget, with Council making $200,000 contributions into the fund in each of the 2008/09, 2009/2010 and 2010/2011 financial years.

Council resolved to support the Gertrude Street project last month after inviting tenders from registered housing agencies for proposals which would increase the supply of new affordable rental housing in the inner city.

As part of that process, Council has also resolved to contribute $200,000 towards building and managing five units in a Yarra Community Housing-managed project proposed for 2 Flockhart Street, Abbotsford.

Cr Stone said Council would work with Yarra Community Housing to ensure local residents were consulted about the Flockhart Street project, which will include 54 units overall, prior to its expected commencement next year.

Residents living near the Gertrude Street project had an opportunity to provide feedback on that project earlier this year, after which Council issued planning and building permits for the project.

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For media enquiries about this issue, please contact:
Ainslie Gowan
Coordinator Communications and Public Relations
Richmond Town Hall
333 Bridge Road Richmond
Telephone 9205 5177, 0400 933 700
Email ainslie.gowan@yarracity.vic.gov.au

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