A Supreme Court class action against Homes Victoria, led by a resident of one of three towers slated for destruction in Carlton, Flemington and North Melbourne began on Monday.
Plans to demolish 44 public housing towers were announced by former premier Daniel Andrews as part of the Labor government's policy in September 2023, before any mention had been made to residents, Homes Victoria chief executive Simon Newport said.
Mr Newport said informing residents of the decision, why it had been made and how it would impact them was a priority.
The government has a contract with construction company John Holland to tear down three towers. (James Ross/AAP PHOTOS)
Homes Victoria then engaged in community consultation, including an open forum led by Mr Newport.
"That was something which we were doing immediately after the announcement," he said.
Two of the three public housing towers, in North Melbourne and Flemington, were infamously locked down during a COVID-19 outbreak in July 2020, later found by the Victorian Ombudsman to have breached the human rights of residents.
Mr Newport admitted he had taken into account residents who had lived through the towers lockdown would be sensitive to the government making another unilateral, unannounced decision about their homes.
"I specifically remember mentioning the fact that there wouldn't be a lot of trust from the people after the lockdowns," he said.
Mr Newport said an option to refurbish the towers was not feasible and would have been equally or more disruptive to residents, who would have to be relocated in either case.
"So for me, it was one and the same," he said.
"We had to make sure that we looked after the people in the towers."
Homes Victoria's defence has refused to share technical documents behind the decision because it said it would reveal the deliberations of cabinet, which are protected under law.
The approach frustrated Supreme Court Justice Melinda Richards.
"It was Homes Victoria generating the policy proposal, and it's not explained to me or anybody else any of the detail that has informed it," Justice Richards said.
"Including some really important technical judgments that had to be made about whether retrofitting was feasible.
"Now I'm just really surprised that the decision is being defended without attempting to explain the substance of it."
The government in August signed a contract with construction company John Holland to tear down the three towers despite the class action suit.
The court heard the contract was valued at about $100 million.
The matter continues on Tuesday.
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