NSW Independent Planning Commission has given the green light for a 24-storey student accommodation tower at The Block in Redfern, drawing mixed responses from the community.

The Aboriginal Housing Company, which owns the property, had plans to redevelop The Block approved in 2012.

The proposed development has been a controversial one with many Indigenous people accusing the Aboriginal Housing Company of putting commercial interests ahead of housing Aboriginal people.

Many within the community harbor fears that The Block will lose its Indigenous identity as it becomes a hub for university students and commercial interests.

The plans include a 24-storey student accommodation tower, 62 affordable dwellings for Indigenous people, a gym, commercial and retail space and a childcare centre.

The first to be built will be the student accommodation tower which the AHC says will fund the affordable housing for Aboriginal people.