Sydney authorities are planning to offer part of the former South Sydney Hospital site at Zetland for sale to convert into more affordable housing units.

Affordable housing manager City West Housing will be tasked with developing new long term affordable rental units. "There's an urgent need for more affordable housing close to the city, to ensure people employed in essential services can afford to live close to where they work," said Lord Mayor Clover Moore MP. "These new affordable housing units on the former South Sydney hospital site will be a significant contribution to our Sustainable Sydney mission to Deliver Housing for a Diverse Population and for 15 per cent of homes in the City of Sydney to be affordable housing by 2030."

Affordable housing is typically subsidized below market rates and is made available only to very low, low or moderate income households for key city workers, such as police, fire fighters, ambulance and other emergency services personnel, as well as nurses, teachers, cleaning contractors and others.

The former hospital site forms part of the Green Square Town Center and the affordable housing units will ensure ongoing diversity in the Green Square renewal area. Heritage buildings and structures will be protected and preserved. City West Housing will own and manage the units for rent at subsidized prices in an effort to address the ongoing shortage of affordable housing in the inner city, and increase the capacity of the Community Housing sector.

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