A derelict Mangerton building - its windows boarded up - will be upgraded into social housing featuring 10 one-bedroom units.
The building at 11 Myuna Way, Mangerton, once included 16 one-room bedsits, but a development application lodged with Wollongong City Council will knock it down and start again.
Each of the 10 one-bedroom units will also feature a laundry, kitchen, lounge area and bathroom.
Four units will be on the ground floor, and six upstairs.
"The proposed development will present as an attractive two-storey residential flat building that will add variety and interest to the existing streetscape," the statement of environmental effects said.
"Building mass has been articulated in segments matching the original materials to reduce visual bulk and scale.
"The proposed upgrade development has been designed to complement the existing neighbourhood character in terms of the proposed architectural intervention and use of materials."
The building will form a square C-shape, its back facing Myuna Way, with shared green space on the other side.
"The upgraded development has been provided with a communal open space area with direct access from internal living areas via [walkways] on the ground and first floors," the statement of environmental effects said.
"The communal open space will serve as an extension of the dwellings for outdoor entertainment and recreational purposes."
No parking spaces will be created as part of the development "due to the anticipated low level of car ownership".
The development application is on public exhibition until June 9.
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