And Haven; Home, Safe chief executive Ken Marchingo expects the package to generate even more development by providing revenue streams for community housing providers.

Mr Marchingo said Bendigo had been guaranteed a minimum investment of $85 million as part of the package, which was announced on Sunday.

Related: Mammoth social housing spend will be game-changer for vulnerable Victorians, advocate says

That was $5 million more than Ballarat and second only to Greater Geelong among the regional priority locations.

"We're looking at somewhere between 250 to 300 new homes, depending on whether they're freestanding or small footprint apartment-style blocks," Mr Marchingo said.

The state government has been contacted for comment.

The government expected its investment to deliver more than 12,000 homes, statewide - a 10 per cent boost to Victoria's social housing supply in four years.

"The secret sauce in this announcement is with almost all of this new housing stock going to be managed or owned by community housing providers that will give us revenue streams that will enable us to continue to build and continue to develop," Mr Marchingo said.

"We think out of this four-year funding package it will set the scene for an ongoing 10-year plan.

"This package has a multi-layered, positive effect."

More news:

Sunday's announcement included the establishment of Homes Victoria, a new government agency.

Mr Marchingo said the package appeared to have addressed everything the sector had been asking for, for years.

The National Affordable Housing Alliance also applauded the state government's investment.

Homelessness Australia called on the federal government to follow suit, with chair Jenny Smith deeming co-investment necessary to deepen the impact.

"This is a golden opportunity for the federal government to turbocharge the historic level of social and affordable housing construction in Victoria," Ms Smith said.

Affordable housing was found to be one of Bendigo's weaknesses in an assessment of liveability, recently published by market research company Ipsos.

Bendigo ranked 11^th in regional Australia, an improvement of one place on 2018.

- with Tom O'Callaghan

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