One of the tenants cried with gratitude at being able to raise her young child in a brand new unit - something she never imagined she would be in a position to provide.

"It was always a massive thing for me to feel like I had a place to call home," the young woman said.

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The two-bedroom units were built following a 2018 announcement of $2.7 million from the Victorian Property Fund.

Bendigo-based community housing provider Haven; Home, Safe invested the money in 16 units, eight of which are being built in Flora Hill.

Haven is partnering with the state government on the project, the total cost of which exceeds $4 million.

Haven chair Damien Tangey said there was significant demand for housing from young people in the Bendigo area.

"All we're doing is working to bridge the housing gap," Mr Tangey said.

He said the state government's $5.3 billion investment in social and affordable housing, part of the 2020-21 Victorian budget, would support the community housing provider to help bridge the gap.

Mr Tangey said Haven would be a key partner of government in delivering the housing investment, particularly in the Bendigo region.

At least $85 million of the state's social housing spend will flow to the Bendigo area. The Macedon Ranges are expected to get $30 million.

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Member for Bendigo West Maree Edwards said the units in North Bendigo were about more than just housing.

"This is also about giving young people the opportunity to go on and build a better life," she said.

Residents receive support services, thanks to a partnership involving Haven and Bendigo-based organisation Amicus.

The young mum living at the North Bendigo units said she had reached the point where she was ready to give up before Haven stepped in.

She said she had probably applied for 50 to 100 private rental properties, with no success. Meanwhile, the lease where she had been staying came dangerously close to running out.

"I felt like I was going to be homeless and I was so terrified," the woman said.

"I didn't know what to do or where to go."

She said she jumped up and down with joy when she found out about the unit, which she felt would provide her child with the housing they deserved.

"I couldn't have even dreamed of having a brand new house. It's so amazing I've been given the opportunity," the woman said.

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