A property developer has been blocked from converting a Sydney boarding house into luxury apartments in what some say could be a precedent-setting legal ruling.
LFD Developments took the City of Sydney to court after the council rejected its proposal to convert the 32-room boarding house in Paddington, which once provided sanctuary to vulnerable residents, into four luxury homes.
The developer lost its appeal on the rejected application in the NSW Land and Environment Court on Thursday on the grounds of social impact and the loss of affordable housing.
It is believed to be one of the first times a developer has lost a case on these grounds in New South Wales.
Ned Cooke, team leader of the Inner Sydney Tenants Advice and Advocacy Service, said the court's ruling was a "huge win for diverse, vibrant, and inclusive communities".
"This ruling goes some way to balance the systemic lack of investment in affordable housing and the insufficient protections for marginalised renters," Mr Cooke said.
