Rodney Shane Freeman appeared via video-link at Wollongong bail court on Sunday, charged with destroy or damage property and damage property by fire.

Police allege Freeman was standing on the verandah of the residence around 7:20pm on January 30, before he set fire to a rag and threw it through the front door, causing the carpet to catch alight.

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Firefighters arrived a short time later and contained the blaze after members of the public made calls to Triple Zero, with police also called to attend.

According to police facts tendered to the court, it is alleged Freeman was still present at the scene when officers arrived, where he then confessed to starting the fire, stating he "just wanted to get rid of the problem".

The facts also allege Freeman admitted to previously causing extensive damage throughout the property, "leaving it uninhabitable".

Police allege Freeman had been living at the address with his late partner, who passed away after a battle with cancer in 2019. His children were subsequently removed and remain in the care of his 78-year-old mother-in-law.

The court heard he had been living at the premises "rent free" ever since, and began causing damage to the home after being sent a legal letter to vacate the house.

Police allege damage caused to the house is estimated to be in excess of $20,000.

In his bail application on Sunday, Freemans' lawyer indicated the 55-year-old was suffering "complicated mental health, grief and loss issues, so he's especially vulnerable", as well as having a brain injury.

"He's lost, effectively, the custody of his children and he's fighting to keep his home," defence lawyer Rohan Harison told the court.

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Police prosecutor Ben Bragger opposed bail, stating, "the safety of the community would be placed in danger" with risk of of further offences being committed.

Although the registrar acknowledged there "may be some vulnerability", she said she was not satisfied bail conditions would mitigate the risk of reoffending or endangering the community.

Bail was refused, with Freeman ordered to appear in Nowra Local Court on February 1.

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