Residents of public housing towers slated for demolition will not be forced to leave their homes ahead of another court challenge.
The Victorian Court of Appeal granted the injunction on Thursday, preventing Homes Victoria from serving notices to vacate residents at three towers in Flemington and North Melbourne.
The towers are among 44 public housing sites across Melbourne that the Victorian government plans to demolish and rebuild by 2051.
Residents from the three towers launched a challenge against the government's plan in the Supreme Court but their case was thrown out in April 2025.
Another fight was mounted in the Court of Appeal but it too was dismissed in December.
The residents were now launching a High Court challenge, barrister Kateena O'Gorman SC told the Court of Appeal on Thursday.
An application for special leave to appeal will be filed in the nation's highest court by Monday but it could be months before the application is considered, she said.
The residents were seeking an injunction in the interim, preventing Homes Victoria from serving notices to vacate, Ms O'Gorman told the court.
She argued the special leave application had substantial prospects of success and it was important for the administration of justice that residents be allowed to stay until the High Court decides.
Barrister Liam Brown SC, representing Homes Victoria, argued against the injunction, telling the court the order could prejudice his client and cause demolition costs to escalate.
Court of Appeal Chief Justice Richard Niall and Justices Maree Kennedy and John Forrest determined an injunction was necessary.
Chief Justice Niall said serving a notice to vacate would cause a substantial disruption to the current position of the residents.
"It would likely cause significant concern and uncertainty to their ongoing entitlement to remain in their homes," he said in the court's reasons.
"The refusal of the injunction would sufficiently disrupt the status quo."
The injunction prevents Homes Victoria from serving the notices to vacate to current residents at the three towers until the High Court rules on the special leave application.
Melbourne Community Legal managing lawyer Louisa Bassini said Thursday's decision was a win for the residents.
"It means they can stay in their homes and see this process through," she said.
"Our clients will be happy knowing they're not forced to leave right now and they can wait and see what the outcome is."
Victorian Housing Minister Harriet Shing said the towers had significant and escalating issues, and they could not continue to stand.
"Replacing the towers is a matter of when, not if - doing nothing is not an option," she told AAP in a statement.
The government would continue to work with residents and help with their relocation needs, Ms Shing said.
