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MCU25/0118 - APPLICATION FOR MATERIAL CHANGE OF USE FOR MULITIPLE DWELLING - AFFORDABLE RENTAL PREMISES (25 x SMALL DWELLINGS) AT 64 LAKE MACDONALD DRIVE, COOROY (referred from Planning and Environment Committee dated 10 February 2026 - Item 7.3)

Development Planner, Georgina Schramm · Development & Regulation Department

Executive summary

This report provides an assessment of an application seeking approval for a Material Change of Use for Multiple Dwelling – Affordable Rental Premises (25 x small dwellings and internal communal area) on land at 64 Lake Macdonald Drive, Cooroy, part of Lot 2 SP348613. The development is located on future “Lot 1”, approved on 30 May 2025 as part of a subdivision creating six lots (including drainage and park areas). Future Lot 1 is in the Community Facilities Zone and has an area of 3,158m2. The subject land is Council-owned. For transparency, the application has been referred to an external planning consultant to conduct an independent review of the assessment undertaken by Council’s Senior Development Planner. The proposed use is identified as a consistent use subject to Impact Assessment and was publicly notified for a period of 15 business days, during which fifty-three (53) submissions were received. The applicant, Coast2Bay Housing Group, a registered community housing provider on the Sunshine Coast, has secured a State Government grant to provide social housing on the subject site. The project is subject to a Capital Funding Agreement (CFA) with the Queensland Government Department of Housing. The CFA commits the development to Social Housing in perpetuity, with a State mortgage held over the land. The proposed development will be specifically allocated to target tenant groups, being families, young people and seniors (over 55’s) from the Queensland Social Housing Register. In November 2022 Noosa Council endorsed the Noosa Housing Strategy 2022 which included a range of actions impacting the potential future use of the site, these included: • Investigate opportunities to make available Council owned land for housing that is desperately needed and currently lacking within Noosa Shire such as social housing, affordable housing, or crisis accommodation. • Investigate potential for housing on 62 Lake Macdonald Drive, Cooroy. Undertake appropriate consultation with the local community. The assessment of the application determined that the proposed development aligns with the Strategic Framework and Objectives of the Noosa Plan 2020. While the development includes minor variations relating to height, car parking and setbacks it remains consistent with the planning scheme. Importantly, the proposal delivers a substantial community benefit in the form of a much- needed housing type within the Shire, contributing positively to housing diversity and community needs, aligning with both Council and more broadly State Government housing initiatives. The development application has been recommended for approval subject to reasonable and relevant conditions of approval.

Recommendation

That Council

  1. Note the report by the Senior Development Planner to the Planning and Environment Committee Meeting dated 10 February 2026 regarding application MCU25/0118 for a Development Permit for Material Change of Use - Multiple dwelling – Affordable Rental Premises (25 x small dwellings) situated at 64 Lake Macdonald Drive Cooroy;
  2. Approve the application in accordance with the proposed conditions outlined in Attachment 1; and
  3. Note the report is provided in accordance with Section 63(5) of the Planning Act 2016.

Report details

Index: ECM/Application/MCU25/0118