Port Kembla's Steelworks Hotel is about to undergo a $10.5 million transformation into social housing, with construction work beginning on Tuesday.
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The long-awaited project will see Anglicare Sydney turn the derelict pub into 30 units for people aged 55 and older, particularly for older women.
The hotel's interior will be entirely redeveloped, but from the street the 132-year-old building will retain the look of a pub.
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Twenty-two dwellings will be inside the existing building, while another eight will be constructed on the grounds.
"We believe that there's a particular need for secure housing for people over 55, one of the groups in the community that is most at risk of homelessness and finds it hard to access secure housing, particularly as they get older," Anglicare Sydney chief executive officer Simon Miller said.
Mr Miller said the units would be made available to people who had applied for housing through NSW government programs.
The homes will be self-contained, but there will also be community spaces, such as kitchens and living spaces.
"There's an opportunity for people to live both independently, but also foster a community here," Mr Miller said.
Wollongong Lord Mayor Gordon Bradbery spoke about the opportunity to convert the pub into something with "greater potential" and use for the community.
"This location is in some of the most socially disadvantaged parts of our city... from my perspective, this is a fantastic project, adding to the possibility that those who are homeless will find a place to sleep and a place where their dignity will be uplifted, so that they too... can carry on the prospect of adding to the momentum and wellbeing of other lives," Cr Bradbery said.
The NSW government contributed $5 million to the project through its Community Housing Innovation Fund.
Minister for Families and Community Natasha Maclaren-Jones said one of the important aspects of the development was its close proximity to shops and transport.
She said this was one of five projects in the area, which would deliver 135 social and affordable dwellings.
Wollongong MP Paul Scully said this redevelopment of the Steelworks Hotel was "something that Port Kembla has wanted to see happen for a long, long time".
Sydney-based construction company Growthbuilt was tasked to deliver the redevelopment but chief executive officer Colin Rahim said it was an Illawarra project and invited local businesses to reach out and get involved.
Construction work comes over five years after Anglicare bought the property with the aim of turning it into housing.
Mr Miller said there was "huge demand" for social housing.
"We are at 100 per cent capacity in all of our projects," he said.
"We could do many, many more of these and find that there would be no end of demand for it."
The new development will bring Anglicare's total stock of social housing to more than 600 units in Sydney and the Illawarra.
In Dapto, Anglicare has a retirement village and nursing, and it is adding social and community housing to the site.
It is expected that construction on the project will be finished by late September next year.
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