Newcastle state MP Tim Crakanthorp has slammed the likely sale of four NSW government-owned properties in Wickham, saying they were suitable for a social housing development.
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The NSW Land and Housing Corporation is understood to have sold or is on the verge of selling four adjoining lots at 47-53 Station Street, properties described in a sale ad as an "inner city development opportunity".
Housing Minister Melinda Pavey told Mr Crakanthorp in a letter this month they were "not required for social housing purposes" and were "therefore being sold via an open market process".
"LAHC reinvests the sale proceeds from these properties into building the right type of new housing to meet the needs of current and future tenants," she wrote.
However, Mr Crakanthorp believes there would be no more suitable spot for social housing, given the lots are close to public transport and on the city centre's doorstep.
He said while the lots were small, combined they could have allowed for a unit block.
"I'm sure where there is a will, there is a way," he said.
"The government is hellbent on selling everything but the kitchen sink.
"Here they are, they've found a bit of extra land and instead of actually doing what is their charter - they're going to sell this off.
"It's a massive lost opportunity.
"It's right next to public transport, in the middle of the city and accessible to therefore all the services and amenities that people from lower socio-economic backgrounds need to access."
The LAHC did not answer a specific question about why the lots, which were marketed for $1.32 million, were unsuitable for social housing. It pointed to the planned construction of 73 new dwellings in the Newcastle LGA "between now and September 2023".
"LAHC is constantly reviewing its portfolio of 125,000 social housing properties to identify opportunities that are available for redevelopment, sale or long-term retention, to ultimately build more homes across the state for people in need," a spokesperson said.
"The properties that are sold in most cases are run down and the ongoing cost to maintain them is simply not sustainable in the long term."
However, Mr Crakanthorp said recent and planned social housing developments were "out west, where there isn't good public transport and access to amenities".
"You need a vehicle," he said. "It's very short-sighted."
The sale of the properties, which is understood to have occurred in recent weeks but is yet to settle, does also not seem to allign with the recent Memorandum of Understanding the LAHC signed with Newcastle council to develop more social housing.
That agreement has a principle to develop more "accessible" social housing and when it was proposed, the historical deficiency of social housing properties close to public transport was cited as something the MoU could potentially help address.
Indeed when asked if the sale went against the MoU, the LAHC spokesperson said the "objective" of the MoU was "to deliver improved outcomes in social and affordable housing for the people of Newcastle".
"To help achieve this the City of Newcastle will work closely with LAHC to identify priority areas in need of social housing and fast track projects," they said.
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