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) · Report

GENERAL COMMITTEE MEETING                                                       16 FEBRUARY 2026




  STATUTORY DETAILS

  SEQRP Designation              Urban Footprint

  Zone                           Community Facilities Zone

  Precinct                       Not applicable

  Local Plan Area                Cooroy Local Plan Area

  Overlays                       Biodiversity, Waterways and Wetlands Overlay
                                 Local Resource Separation Area (limited only to the north-
                                 eastern corner of property)
                                 Flood Hazard Overlay
                                 Landslide Hazard Overlay

  Assessment Type                Impact

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