East Orange social housing tenants are celebrating after the state government backed down on plans to demolish their houses and relocate them.
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The government announced on Monday the NSW Land and Housing Corporation would not proceed with its plans to provide "new and more" social housing in Spring and Summer streets.
It said it had listened to protests from the residents and the community.
They'd be so relieved their homes aren't going to be destroyed
- Andrew McDougall, Spring Street action group
Spring Street action group organiser Andrew McDougall said it was 'great news.'
He said LAHC's move last October to replace about nine houses had caused great distress for the residents, some of them who had lived there for many years.
"They'd be so relieved their homes aren't going to be destroyed. It was exceptionally worrying," he said.
"How would you feel if you're in your 80s and been living in a house for 20-30 years?"
Mr McDougall said support for the residents had been widespread including state and local government representatives and the wider Orange community.
He said the LAHC now needed to ensure the properties were maintained for the residents.
Mr McDougall said the existing community in the area showed how social and private housing could work together harmoniously.
Nationals MLC Sam Farraway announced the decision, saying the residents' concerns had been heard.
"We thank the community for their feedback at our recent community consultation sessions and we agree that the existing homes at these sites should continue to be used for social housing in Orange," he said.
Housing minister Melinda Pavey said the LAHC would work with Orange City Council to improve social housing.
"We have listened and we remain committed to delivering additional social housing stock across the Orange LGA, " she said.
"The investment in new social housing not only supports vulnerable people, it also boosts other local families and local businesses through the creation of jobs," Ms Pavey said.
She said the LAHC would continue "to progress a number of small-scale redevelopment sites" in the area.
About 75 per cent of priority wait list demand for social housing in Orange is for studio, one and two-bedroom homes, with a wait time of between two and five years for smaller dwellings.
She said the lack of overall dwelling availability was also forcing up waiting times for larger homes to about 5-10 years.
Long-time resident of the area Button Dunn said a small group had been "instrumental in pushing and pushing" to stop the changes.
She said there were concerns for the social housing residents and the affect any development would have on the heritage of the area.
Orange mayor Reg Kidd said it was a good result for the East Orange community.
However, he said there was a major need for more social housing in Orange and the council would be working with the LAHC to identify where it could be provided.
"We will be working together more co-operatively. It's a win, win," he said.
Member for Orange Phil Donato said he opposed the LAHC's move.
"LAHC failed to consult with the community in the East Orange neighbourhood before initiating their plans to displace families, demolish family homes and develop high-density housing," he said.
"It should not have taken public criticism of the department for this decision to have been reached. If proper consultation had occurred before advancing plans and notifying residents they were being kicked-out, much upset could have been avoided."
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