Court of Appeal upholds decision on public housing tower retirements

Victoria’s Court of Appeal has upheld an earlier Supreme Court decision in favour of Homes Victoria, confirming the legality of the state’s plan to retire and redevelop all 44 public housing towers by 2051 – including the first sites in Flemington, North Melbourne and Carlton.

In a judgment delivered on December 19, the three-member bench dismissed an appeal brought by Flemington resident Jason Mallard on behalf of renters in the three estates. The appeal challenged Homes Victoria’s 2023 decision to begin retiring the towers without notifying or consulting the residents affected.

The court found that while the CEO of Homes Victoria’s decision interfered with renters’ right to home under section 13 of the Charter of Human Rights, the interference was not “arbitrary” and was sufficiently justified. It also ruled that renters were not legally entitled to procedural fairness at this preliminary policy stage, noting that tenants’ existing rights of exclusive possession remained unchanged until further steps were taken.

The decision is a major legal win for the Victorian Government’s large-scale redevelopment agenda, which will eventually see all existing public housing towers demolished and replaced with new housing. But legal advocates representing residents say the ruling does not absolve the government of its obligation to meaningfully engage with communities whose lives will be upended.

Inner Melbourne Community Legal (IMCL), which ran the class action and appeal, described the outcome as disappointing but stressed that the two-year legal battle had already exposed the harm caused by the government’s failure to consult residents. IMCL managing lawyer Louisa Bassini said the case had given residents “a voice they were denied” when the demolition program was first announced.

“Plans to demolish these 44 towers will have a profound impact on the future of public housing in Victoria,” she said.

From this point onwards, public housing residents must be put at the centre of the government’s plans … and have an opportunity to be heard before they are told their homes are to be demolished.

Lead plaintiff Jason Mallard echoed the concerns, saying, “People have rights. You can’t just pull the rug under somebody and expect them to go somewhere that you want them to go.”

IMCL has called on Homes Victoria to pause issuing Notices to Vacate until all legal avenues are exhausted and flagged that further appeal options were now under consideration.

Public housing communities, particularly in Melbourne’s inner north and west, have long warned that large-scale redevelopment risks fracturing established neighbourhoods and diminishing already scarce public housing stock.

IMCL emphasised that the 44 towers represent about 10 per cent of Victoria’s public housing – a critical resource close to hospitals, transport and essential services.

While the government has successfully defended its decision-making process in court, advocates say the next phase – how, when and on what terms residents are moved or rehoused – will determine whether trust can be restored.