High costs involved in revamping a 19th century city centre building has forced new plans to be submitted to stop the development from falling through.
The grade II listed Carrow Hill House, which has stood derelict since 2013, was due to receive a huge refurbishment to convert the space into two large semi-detached villas.
However despite gaining approval back in January "high costs" in carrying out the work has threatened to put the whole project in jeopardy.
This led to an application being submitted to Norwich City Council last week for a new house to be built, which would be located to the rear of Carrow Hill House, in order to finance the rest of the conversion.
In a statement from project consultants, Waller Planning, it says: "The approved development has not progressed due to the high costs involved in refurbishing and converting the building.
"These costs would render the development financially unviable, meaning it could not proceed.
"This application has been conceived and the new house proposed would be provided as 'enabling development' which would generate the additional funding required to make the conversion viable.
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"Without the additional funding, which the new house would generate, it would not be possible to finance these works and the listed building would remain at risk and face an uncertain future."
The new one and a half storey house would be L-shaped with an arched roof and consist of three bedrooms.
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Those wishing to comment on the new application have until December 23, with an internal recommendation date by the case officer of January 24.
Carrow Hill House has become derelict since it was last used as a hostel for rehabilitation and support for the homeless more than a decade ago.
The site has seen many changes over the years being used as a a single house, two houses, six apartments and most recently a hostel.
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