The University of Tasmania has lodged a $14 million 180-apartment student housing proposal for its Newnham campus with the Launceston City Council.
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The project is being funded under the federal government's National Rental Affordability Scheme.
The apartments will be built at the northern end of the campus between Investigator Hall and Newnham Link road.
The self-contained apartments will be grouped in to three buildings, three storeys high, with connecting courtyards and pathways.
The proposed site is near a sewerage plant meaning it needs discretionary approval from Launceston aldermen when it goes before the council.
Last month aldermen agreed to transfer ownership of land at Inveresk to the university for a separate student housing project.
To let the $20 million development go ahead, the council also transferred part of Inveresk's Stone Building, the Exhibition Building and the Fine Furniture Building to the university, as requested.
The facilities are currently used by the university.
In return the university is to contribute $500,000 to the building of the flood levees, which were altered to accommodate the 180-student housing project on the banks of the North Esk River.