A Carrington property owned by a former Newcastle councillor is under investigation after council alleged the three-bedroom home was converted into an eight-bedroom dwelling without a development application.
The property at 84 Mathieson Street is owned by Aaron Buman, a former Independent councillor who ran on the Liberals' ticket in last year's Newcastle council election.
He owns several boarding houses in the Hunter region, including one nearby the property in question.
City of Newcastle said in a memo that after being contacted by a community member about the property, a council officer visited the premises on October 10 and saw tradespeople on site.
Three days later a council officer inspected the dwelling in the company of the property owner.
The officer claimed internal building works had been undertaken and the property had eight bedrooms. Council also alleges alterations had occurred to the kitchen and bathroom.
Council said its records indicated no development consent had been issued for building works undertaken at the property.
When contacted by the Herald, Mr Buman said: "how the property is, is how I bought it".
He denied that he had done any building work to the house.
Mr Buman said there was a housing crisis going on and he provides affordable accommodation for people in need of shelter through numerous share houses he owns around Newcastle and Lake Macquarie.
He said he may at different times have people sleeping in different rooms like the dining room or lounge room, but that he had no plans to turn the Mathieson Street property into a boarding house.
Council said it was investigating the matter.