Community housing provider Bridge Housing purchased a building with the help of more than $7.8 million from a City of Sydney levy.
The units will be leased by Bridge Housing from 2023 for no more than 30% of the household's income.
Sydney Lord Mayor Clover Moore said the City of Sydney is doing everything in its power to create more affordable housing in the local area.
"We've got an acute housing affordability problem in the inner city and responding to this crisis is a critical issue for all levels of government," the Lord Mayor said.
"It's crucial that affordable and culturally safe rental options are available to Aboriginal women in central Sydney, a group we know can face additional challenges and be particularly vulnerable when it comes to securing a home.
"We're delighted to help add more affordable homes to the city's market mix as we strive to make more housing in the local area affordable."
This City of Sydney affordable housing program was set up in 2014 when land in the southern part of the city was rezoned from industrial to other employment uses. Developers in that area are required to make a financial contribution towards affordable housing.
The City of Sydney has partnered with the NSW Department of Communities and Justice to distribute the funds among community housing providers to build affordable housing in the local area.
Minister for Families and Communities Natasha Maclaren-Jones said the apartments will make a huge difference to the lives of many Aboriginal women in the community.
"We know that everyone deserves a safe and stable place to live, and we are committed to delivering more affordable housing to those in our community who need it most," Mrs Maclaren-Jones said.
The program is one way the City of Sydney aims to make 7.5% of local housing affordable for people earning low and moderate incomes. Under this scheme, properties are leased out at no more than 30% of the household's gross income. The City of Sydney also uses its planning controls, provides grants to build affordable housing and sells land at a discount to community housing providers.
Bridge Housing will refurbish the building to ensure it is welcoming, culturally appropriate, safe and energy efficient before new residents move into their homes, which is expected to be in April.
"Bridge Housing is delighted to be partnering with the City of Sydney to deliver more affordable housing for Aboriginal women and children," Rebecca Pinkstone, CEO Bridge Housing, said.
"By purchasing this unit block in Glebe, we have been able to retain affordable homes for our local community. The upgrade works we are undertaking will improve the environmental performance and reduce costs for our residents over the longer term. Residents will also help design and create a new community garden using Indigenous designing for country principles.
"Affordable housing is critical infrastructure that supports a diverse and thriving city. By working with community housing providers like Bridge Housing, local government can maximise the amount of affordable housing delivered locally. We commend the City of Sydney for their continued leadership in this area."
