The bid includes space to help youngsters develop business skills; a play area and more than 540sqm of retail floorspace.
The charity reports longstanding issues with Durning Hall's buildings and says the site is no longer financially sustainable.
Ms Austin said the plans showed community use will be cut to just 10 per cent of its previous size with no guarantee of public use.
Draft plans for the site of Durning Hall show the view from Earlham Grove looking east towards Woodgrange Road.
- Credit: Aston-Mansfield
Claire Helman, Aston-Mansfield's chief executive, said: "We are pleased to have submitted the planning application for Durning Hall, which will secure our future in Newham and enable us to continue our charitable work in the borough.