Parliamentary Inquiry calls for Victorian Government to pause public housing demolition

A parliamentary inquiry has recommended that the Victorian Government halt work on its plan to demolish and redevelop 44 public housing towers, prompting renewed calls from community legal centres for greater transparency and evidence behind the policy.

The Legal and Social Issues Committee tabled its report in the Legislative Council on December 2, examining the basis for the statewide redevelopment program first announced in 2023.

The report raises concerns about whether demolition is necessary in all cases, the adequacy of the government’s consultation with residents, and the long-term implications for public and affordable housing supply.

Under the recommendations, the government would be required to pause all redevelopment activities until it releases detailed condition reports for each building, feasibility studies exploring alternatives to demolition, and site-specific cost–benefit analyses.

Inner Melbourne Community Legal (IMCL), which represented several residents during the inquiry, said the report highlighted significant gaps in the government’s justification for the program.

Managing lawyer for housing and tenancy Louisa Bassini welcomed the findings.

“This report shows that the government plan to demolish 44 public housing towers has been ill-conceived, will cause enormous disruption to residents’ lives and has not been adequately justified,” Ms Bassini said.

She said evidence presented by residents illustrated confusion, distress and a breakdown in trust with Homes Victoria, adding that the towers supported long-standing communities.

These buildings are more than just a roof over their heads – they are communities of people who provide immense security and support to one another, she said.

The committee report found that the government and Homes Victoria had engaged in “coercive and misleading practices” that caused “deep harm” to residents’ wellbeing – a finding backed by IMCL, which urged the government to prioritise residents’ welfare and improve communication.

Ms Bassini said the government should publish all information underpinning the demolition decision and provide legally binding guarantees of residents’ right to return once redevelopment is complete.

West Heidelberg Community Legal, part of the Social Housing Legal Program, said the inquiry also raised questions about the expansion of community housing models in Victoria.

Principal lawyer Stephanie Price said the report found confusion around the government’s use of the term “social housing”, which encompasses both public and community housing but can mask key differences between them.

“The report highlights the concerns many public housing residents and housing advocates have about public housing being replaced with community housing,” Ms Price said.

“Renters in community housing generally pay higher rents with less certain long-term housing security than those in public housing.”

The government is yet to formally respond to the inquiry’s recommendations.

Meanwhile, the ABC reported in December that Alfred Street tower and its surrounding North Melbourne housing estate including three other towers – known as Hotham Estate – have now been nominated to Victoria's heritage register after a successful appeal by a tenant group.

Heritage Victoria confirmed it had recently accepted the Hotham Estate nomination – meaning any construction is delayed while the site is assessed for possible protection under state heritage laws.•