Church Block Pty Ltd lodged a development application with council in September last year to build a three-storey, 28-unit complex at 85 Church Street, Maitland next to the Caledonian Hotel.

At a meeting in October, councillors refused the application citing an over-development of the site which would not suit Maitland's 'vibrant city' plans or heritage conservation area in which it would be located.

The proposed building was to also include an additional upper attic level and 28 self-contained boarding rooms.

The aim was to provide accommodation for low and moderate income working singles and couples, tertiary students or apprentices, young people leaving home, retirees and pensioners who seek affordable and flexible accommodation close to employment and services.

The Mercury reported at the time that 12 submissions were received in opposition to the development, one of which has been withdrawn.

Issues raised in the submissions included over development of the site and the threat of altering the historic character of the Maitland Heritage Conservation Area.

The application had been through a re-design process, with an overall reduction in the number of boarding house rooms from 40 to 28.

Additional amendments to the design have again been made including the removal of centrally located north-facing rooms on both levels 1 and 2.

"All elevations have been amended to reflect the floor plan changes and improve the impact on the Heritage Conservation Area and in particular the streetscape presentation of the development, including the screening of the ground level parking area," the court judgement said.