Australand and the Department of Human Services have submitted plans for a nine-storey apartment block, part of the rejuvenation of Carlton's run-down public housing precinct.
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The Jackson Clement Burrows-designed building is the sixth stage in a decade-long project, which includes demolishing and replacing public housing with a mix of public and private housing on three state-owned sites in the inner-city northern suburb.
Stage six of the project is on the corner of Colgan and Rathdowne streets, next to a newly completed residential aged care building opposite the Carlton Baths.
The building will be sold for private housing, Australand's Victorian general manager Robert Pradolin said.
It will be the eighth building constructed by Australand as part of the Carlton redevelopment project, which included 243 public housing residences that were finished last year.
"This is now the delivery of the private component. We've got another two buildings to go," Mr Pradolin said.
"We've finished our social commitment."
The concrete and metal structure will cost $35 million and have a range of one- to three-bedroom apartments that meet the needs of people will mobility impairments.
Australand and Citta Property Group were appointed joint venture partners under the Living Carlton Consortium to undertake the project in 2009.
The new building will be outside height guidelines for the project and will require the consortium to seek an amendment to the overall development plan.
"The building height and form has been designed to ensure there is no additional overshadowing of the Community Garden to the south," planning documents state.
Australand has completed and sold several apartment developments and townhouses under the renewal project.
Its most recent development, the Carlton Residences, went on the market mid-year.
They include 20 residences spread around the corner of Keppel and Cardigan streets, in a quiet spot between the University of Melbourne and Lygon Street's cafes and shops.
An earlier complex built in the same location contained a mix of 98 private and 50 public homes.
Other housing estates in Melbourne have also had an injection of new homes.
Another 188 homes were redeveloped on Prahran's Horace Petty estate and 207 homes were built in Elizabeth Street, Richmond, last year.
Tenants also moved in to 152 new homes in the Fitzroy Housing Estate.
