13.6 C
Byron Shire
June 3, 2026

Byron Mayor defends Mullum hospital residential rezone – won’t pay for social housing

Latest News

Advocates and civil society organisations call to drop the charges against Herzog protestors

In an open letter to the NSW Premier, Attorney-General, Minister for Police, and Commissioner of Police, advocates and civil society organisations have called for the charges to be dropped against people protesting against the visit of the President of Israel on 9 February 2026.

Other News

$10m Booyong mansion on exhibition

A large dual occupancy (detached) proposal with a five bedroom mansion, swimming pool and a three bedroom caretakers dwelling is proposed for 501A Booyong Rd, Booyong.

Advocates and civil society organisations call to drop the charges against Herzog protestors

In an open letter to the NSW Premier, Attorney-General, Minister for Police, and Commissioner of Police, advocates and civil society organisations have called for the charges to be dropped against people protesting against the visit of the President of Israel on 9 February 2026.

Appeals to help Alstonville High School teacher

Friends are rallying around a Alstonville High School teacher suffering from cancer, and are appealing to the public for financial help.

Greens from The Farm are flourshing

At the heart of a thriving market garden is timing, soil health, and a deep connection to the seasons...

Byron’s Main Beach reopened

Byron Bay’s Main Beach was officially reopened to the public for water activities at midday today (Monday) after an earlier shark sighting.

Booyong killing fields IV

I moved to Booyong long before the Booyong pig abattoir existed. What started as a small unobtrusive enterprise has escalated...

A rally in 2017 to save the Mullumbimby Hospital site for community use attracted some 300 people. Photo Aslan Shand

More details are emerging around Council’s plans to rezone the former Mullum Hospital site to a residential precinct, which would see up to 130 dwellings built.

The planning proposal is open for feedback until February 11.

And while Mayor, Michael Lyon, confirmed that plans will include selling an unknown amount of land to recoup the $5m debt incurred in demolishing the building and remediation works, Local State MP Tamara Smith (Greens) told The Echo, ‘The notion that the costs to develop the site are somehow owed to Council from the community is absurd’.

Council purchased the site from NSW Health in 2019 for $1.

Cr Lyon told The Echo there are no finalised plans for the site yet, ‘including the final component of social, affordable [housing] or otherwise’. Cr Lyon said, ‘We will undoubtedly entertain having social housing outcomes on the site, we won’t be paying for it, it will need to be funded by state and/or federal government’.

Byron Shire Mayor councillor Michael Lyon. Photo supplied

Only 20% to remain in public ownership

He also defended Council’s vision for the site, claiming that it will not be a transfer of public wealth to private investment.

Cr Lyon said a portion of the site – estimated at 20 per cent – will provide social and affordable housing and, ‘can potentially stay in public ownership and control’.

‘Further, in order to provide affordable housing outcomes, and to build the housing, some of the lots and/or land will need to be sold to the private market. There is no other way to do it’.

The guarantee that the project will provide affordable housing, says Cr Lyon, is that, ‘it will be based on people’s ability to pay, rather than on discount to market, and it will be in perpetuity’.

Image from a draft strategy for the Mullum Hospital site. Image: Byron Council

‘We have developed the Affordable Housing Contribution Scheme (AHCS), the first regional Council in NSW to do so.

‘Through this, we will be able to facilitate social housing outcomes by lobbying for funding from state and federal governments so that a portion of these affordable houses can be converted into social housing outcomes’.

Lack of transparency

A spokesperson for the Department of Planning, Housing and Infrastructure confirmed with The Echo that, ‘Council has not approached the NSW government to include social housing on this site’.

And like most Council projects, there is little transparency.

The Echo approached community members involved in the most recent design process, but they said reluctantly they were unable to comment, owing to them signing a media gag order. 

Ballina MP Tamara Smith. Photo David Lowe.

Public, social and affordable housing

Local State MP Tamara Smith (Greens) told The Echo, ‘Byron Shire Council still has the opportunity to approach the state government for assistance to deliver public housing on the Mullumbimby hospital site, and I hope that they take the opportunity.’

Public housing is government-run (not for profit); social housing is provided in partnership with government and affordable housing developers (for profit) while affordable housing is developer-led (for profit).

Ms Smith said, ‘When the state government closed our hospital and offered the land back to the community after intense lobbying by our citizenry, it was a return to the community, not a windfall for Council’.

‘Council owns the land, and it is worth a lot of money. It is an asset on their books, so the notion that the costs to develop the site are somehow owed to Council from the community is absurd.

‘This is a once-in-a-generation opportunity to deliver much needed public housing for people in our community. Aboriginal and Torres Strait Islander people are overrepresented significantly on public housing waiting lists and the current waitlist for people in our area is 10-20 years!’

Mullum Hospital site and the proposed upzoning boundary adjustment. Image supplied.

20 per cent pegged as ‘affordable’

Federal Greens candidate, Mandy Nolan has been a vocal proponent for housing for those who are vulnerable and unable to find secure rental accommodation.

Given Council proposes just 20 per cent of the entire site as ‘affordable’, The Echo asked Ms Nolan whether she thought that would be a good outcome?

She replied, ‘We’re in the heart of a housing crisis, and this is a prime piece of flood-free land in Mullumbimby. This is the perfect opportunity to take real action to address the housing crisis. The needs of this community needs to be at the centre of all decisions made about this land’. 

‘Everything possible should be done to keep this land in public hands. The state government needs to step up and support Council to do just that.

‘They have the money. 

‘The Greens have fought for greater investment in housing at a state and federal level. Council should take advantage of the additional money The Greens have delivered and use the site to deliver much-needed public housing for our region.

Residents rallied to save Mullumbimby Hospital land for the community in 2017. Photo Jeff Dawson

‘We need to address the lack of confidence the community has with the term ‘affordable’ housing.

‘We know that in a market like ours, the affordable metric is problematic, and very often houses built with this in mind are not affordable. Or if they are, don’t remain so.

‘Any affordable housing component on this land must be in perpetuity, not for a fixed period, and be truly affordable. This means rents that are indexed to a person’s income and not based on the market rate, which is so astronomically high that even a reduced rental rate is out of reach for most renters’. 

The planning spokesperson also said, ‘We acknowledge the state’s current housing crisis and the need for more social housing in regions such as the Byron Shire. There are 247 social housing properties in the Byron LGA. In the surrounding LGAs, a further 240 social housing homes (119 Tweed, 61 Richmond Valley, 29 Ballina and 22 in Lismore) have been committed to as part of the Flood Recovery Program.

To read the planning proposal, visit www.byron.nsw.gov.au.



For four decades The Echo has printed the stories some people loved, some people hated, and some pretended not to read. If you want us to keep telling the truth, the real truth, not the sugar-coated version. We’ll need your support to keep the presses rolling.

If you are a local business owner help us and in turn we help you. All The Echo asks for is advertising, not a free ride. It is every advert in The Echo and on www.echo.net.au, which creates the space for all the stories and coverage of community events, happenings and concerns.

If you are a reader you can become a sponsor of The Echo. Your support keeps the us independent.

Even a small one-off or regular donation from you will help keep the echo’s independent voice alive and strong.

Support Us

Become one of the supporters who helps keep independent, local journalism alive in the Byron Shire by contributing anything from as little as the cost of a coffee each month.

You're Wonderful, Thank you for supporting independent journalism in the Byron Shire

You’re supporting The Echo, thank you

Your contribution is keeping independent, local journalism alive in the Northern Rivers.

Because of supporters like you, we can keep every story free for everyone — no paywall, no exceptions. Your money goes directly to funding our newsroom of 40-odd local workers covering the stories that matter to this community.

Tell us what you think, give us your opinion

The Echo loves your letters and comments and is proud to provide a community forum on the issues that matter most to our readers and the people of the NSW north coast. So don’t be a passive reader, email us your epistles at editor@echo.net.au.

The letters deadline for The Echo is noon Friday. Letters longer than 200 words may be cut. The publication of letters is at the discretion of the letters editor. Please remember to include your full name, address and telephone number.

Online comments are no longer available.

Eclectic Selection for the week beginning 3 June 2026

Eclectic Selection: What’s on this week is a taste of some of the events that can be found in the Byron Shire and beyond this coming week.

Stout Blackout Blowout at Earth Beer

Nestled among the rolling green hills of Cudgen, just minutes from Kingscliff on the Tweed Coast, Earth Beer Company has become one of the...

Greens from The Farm are flourshing

At the heart of a thriving market garden is timing, soil health, and a deep connection to the seasons – something Josh Dooley from...

Interview with Pacific Avenue

South Coast rockers, Pacific Avenue, have left an indelible mark on the music industry, their debut studio album Flowers secured a spot as a number one Australian album earning two ARIA nominations. Now, their recently released second studio album, Lovesick Sentimental, looks to be heading in the same direction.