Plans have been submitted to convert an unused building into flats.
Housing association Home Group want to convert Chichester Foyer, in Velyn Avenue, into 23 self-contained homes.
The three-storey building, which currently has 54 rooms, was used as a residential facility for vulnerable people until it closed in 2017.
READ MORE: Restaurant named the best in BRAVO awards
In plans submitted to Chichester District Council, Home Group said they want to retain the current façade of the building but make internal changes to create these "modern, comfortable living spaces".
The proposals state that the flats would be a mix of 14 one-bedroom homes and nine two-bedroom homes with open plan kitchen and living room spaces.
The 19-space car park would not be changed.
The housing association group also said the flats would be available through an affordable rent scheme which would be supplied by a registered social landlord and partly funded through a Homes England grant.
A spokesman for Home Group said: "The aim of this project is to provide an attractive, affordable and secure development, with dwellings which appeal to young couples and families.
"The development will focus on place-making to enhance the public realm, providing high-quality streetscapes and landscaping to improve the aesthetic appearance, security and social infrastructure for residents.
"The design will be attractive, have its own identity and be well connected to the surrounding area."
Louise Williams, housing enabling officer at Chichester District Council, said: "There is an acute need for units of this size in the centre of Chichester and we are supportive of the application that has come forward to assist in meeting this need."
However, West Sussex County Council Highways voiced concerns over the plans due to a lack of parking spaces for visitors.
A spokesman for the highways team said that cycle storage facilities should be available and that future residents should be encouraged to use public transport.
They said: "As additional car parking can’t be increased due to the archaeology of the site, WSCC would expect the applicant to make best efforts to encourage sustainable travel amongst its residents to reduce the reliance on the private car."
A decision on whether to approve the plans will be made by June 17.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here