Construction has begun on a new $22 million building project in Corrimal that will provide affordable rental housing.

The Robert Street complex will comprise 34 new homes, and be a mix of one and two-bedroom units and four-bedroom townhouses.

Read more: Shortfall of social housing in the Illawarra has now clocked over 3000

Community housing provider Housing Trust will work with development partner Traders in Purple on the project.

The Housing Trust will take ownership of the majority of the development, with the NSW Land and Housing Corporation retaining ownership of seven units that will be managed by Housing Trust.

The new complex is part of the NSW Government's Communities Plus initiative.

This is the latest Communities Plus project undertaken by the Housing Trust and planning has begun with Traders in Purple on a project in Crown Street, Wollongong.

The first residents are expected to move into the Robert Street development in late 2021.

The site, the former location of a primary school, has been vacant for some time.

Housing Trust CEO Michele Adair said the project was one of the largest purchases made in the Housing Trust's 37-year history.

"The Robert Street project is a major milestone for Housing Trust and one of our largest investments in our mission to provide a decent home for everyone," she said.

"There's no better way to recover from COVID-19 and the bushfire crisis than an investment in affordable rental housing."

Ms Adair said this was a "medium-sized project" which would help meet the region's housing need.

"But in terms of scale, there is no question that we must do a lot more large-scale projects," she said.

Traders in Purple director Charles Daoud said the project would boost the economy and create local jobs.

Minister for Families, Communities and Disability Services Gareth Ward said the project is another example of collaboration between the NSW Government and non-government housing providers.

Meanwhile, work is under way to deliver 18 new homes to support vulnerable people, with the NSW Government progressing two social housing projects valued at $5.91 million in total.

Construction has begun on a $2.6 million project to build eight new homes on Blackman Parade, Unanderra.

Detailed plans have also been released for a $3.31 million development to build 10 new homes on Jemima Street, Unanderra.

Both developments form part of the NSW Government's Future Directions for Social Housing.

The Blackman Parade development will deliver four one-bedroom units and four two-bedroom units with on-site parking, associated landscaping works and the construction of a new footpath, and is set for completion in the first half of 2021, with residents to move in shortly after.

The Jemima Street development will consist of six one-bedroom and four two-bedroom units.

Subject to planning approval, construction on the Jemima Street project is proposed to commence in early 2021.

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