A 42-ROOM boarding house has been proposed for a property near the centre of the Tweed Heads CBD.

The applicant, Boden Property Pty Ltd, lodged a development application for the $2.85 million proposal, at 31 Boyd St, with Tweed Shire Council on August 27.

The land is subject to a previous demolition approval, granted by the council last year.

The DA seeks to construct a three-level boarding house, consisting of two levels of boarding rooms above a carpark.

In a letter submitted with other DA documents, David Whitbourn of Whitbourn Holdings Property Group and Boden Property said the application would be "in accordance with the Tweed City Centre Vision of creating a vibrant city centre with the redevelopment of existing older single residential buildings with new multi-unit buildings to increase the residential density in close proximity of the existing services infrastructure".

He said the proposed building would provide more stock for a "vastly under-catered requirement for low cost accommodation in Tweed Heads" and would therefore "support residents in need and provide that next step up in reducing homelessness on The Tweed".

The proposal falls under NSW'S Affordable Rental Housing State Environmental Planning Policy.

The proposed building is to include a manager's accommodation and most of the boarding rooms are just 17.4 sqm (or 3 x 5.8 metres) in size, although there is one larger room on each floor.

A communal laundry is included in the plans and each room appears to have a bathroom and kitchen facilities included.

A communal garden is also included in the plans.

In June, the council approved a $14 million, seven-storey residential building for a neighbouring property encompassing 33 and 35 Boyd St.

That building will contain 40 units and is being developed by the New South Wales Land and Housing Corporation.