In 1982, a group of Sydney University students came together to establish community housing. An old glass-making factory was purchased and renovated with a design from the architecture faculty at Sydney University, based around a central courtyard and retaining much of the original timber structure. Funding was supplied by the university and the Department of Housing. STUCCO opened in its current form in February 1991.

Since then over 600 students have lived at STUCCO.