A new boarding house providing accommodation for up to 11 people is proposed for Shellharbour Village.
An application has been lodged with Shellharbour City Council to build the residence at 13 Darley Street.
Under the proposal, the existing house on the site would be demolished and a two-storey building would be built in its place.
The house would include 11 rooms for single occupancy, one being an accessible room and each with an ensuite and kitchenette; a communal living space; common laundry spaces; parking for five vehicles; and an open outdoors space.
The application to the council said the boarding house would have a positive social impact by providing low-cost rental accommodation in a location close to services.
It said the developer was in the final stages of becoming a social housing provider.
"The proposal is considered to respond positively to the context and setting of the area and is not likely to affect the amenity of surrounding residences," a document prepared on behalf of the developer said.
"This is reinforced with the inclusion of a boarding house management plan that will be implemented on the site in perpetuity to ensure that all tenants portray their respective roles as good neighbours."
The application indicates rent would be $250 per week.
A social impact assessment submitted to the council said that based on residents of existing boarding houses in the region, it was expected 80 per cent of residents would be male; the median gross income would be about $400 per week; and most would not be working.
About 20 per cent would attend an education institution.
But the report said that based on the profile of people living in one-bedroom and studio homes in Shellharbour, residents of the boarding house would be older; less likely to be unemployed or a student; have a higher individual income; and have greater residential stability.
"In either case, the proposed boarding house would provide flexible and more long-term accommodation for low-income workers, casual or contract workers, students and older people," the assessment said.
It said the boarding house had potential to significantly benefit low-income single people, but it would not be affordable to very low-income people - that is, those earning less than 50 per cent of the median income - nor half of those on low incomes.
The report said there were also no registered general boarding houses within the Shellharbour local government area last year.
If it goes ahead, an off-site manager or agency would manage the boarding house.
The development application is on exhibition until April 27.
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