The Adaptive Reuse City Housing Initiative (ARCHI) launched yesterday will spend $500,000 of State Government grant funding over two years to repurpose vacant CBD buildings.

Lord Mayor Jane Lomax-Smith said at the launch event that the program made the council an enabler rather than a roadblock when it came to activating property.

“I know that there’s a lot of unease about converting properties into residential, everyone thinks it’s difficult, it’s challenging,” she said.

“We do want to help property owners activate and utilise the business investment they have and the property they have.”

To deliver on this commitment, the program has introduced an incentive scheme to partially fund residential adaptive reuse buildings up to four storeys tall.

Funding of up to $10,000 is available to partially fund feasibility assessments, professional advice and development approval documents.

If an adaptive reuse project delivers four or more dwellings, $50,000 of funding is available for construction costs. $25,000 in construction cost funding is available for a project delivering one to three dwellings.

The council’s incentive schemes for heritage conservation, sustainability and noise management are also available to be accessed for adaptive reuse projects.

The City of Adelaide have a range of guides available on their website outlining how to adapt shop-top dwellings, like the single dwelling pictured. Photo: City of Adelaide

A city-wide audit done by postgraduate students from the University of Adelaide and council staff identified 148 potential properties for adaptive reuse.

Lomax-Smith said 50 was a conservative target.

“I know the 50 a year doesn’t sound like a huge ambition,” she said.

“But if you’re struggling to find a rental, if you’re couch surfing, if you’re still living with your parents and you need somewhere to go, this is an opportunity that we shouldn’t miss, and I think it’s actually almost immoral for us not to try.”

Housing and Urban Development Minister Nick Champion said adaptive reuse was an innovative approach that “provides a point of difference in the market”.

“Converting vacant space above shops into possible housing is a genuine option that will appeal to many people wanting a cosmopolitan and vibrant lifestyle,” he said.

Champion last week told a CEDA conference that adaptive reuse of old office buildings was not a housing crisis solution due to the huge costs involved.

A spokesperson for Champion’s office told InDaily the Minister’s adaptive reuse criticisms related to big CBD office blocks and not shop-top housing conversions being explored by the council.

Lomax-Smith speaking at the Launch event of ARCHI. Photo: Helen Karakulak/InDaily

Lomax-Smith said shop-top housing targeted by ARCHI was a “sweet spot” because it’s a lower-scale conversion and therefore a lower cost than converting bigger buildings.

“When you talk about shop-top, and you talk about low-scale two or three-storey buildings, you’re talking actually about more affordable housing,” she said.

“I’m quite confident that there are people who need affordable housing or work in essential services, essential industries who want to live in the city.

“They might well be working in restaurants or retail in the city and that will be the sort of price point that we might be aiming for as well as more upmarket, more expensive, less affordable premises in some streets, so I think this is really exciting.”