Victoria's government will give $219 million to community housing agencies for planning and construction of nearly 50 social housing projects across the state's regional areas.
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Housing minister Danny Pearson announced the grants from the social housing growth fund on Tuesday.
Seventeen community housing agencies will receive funding for 46 projects to deliver up to 683 homes in regional Victoria.
"This is about making sure that we've got social and affordable housing throughout regional Victoria, to make sure that people get the housing they need, where they need it, and when they need it," Mr Pearson told reporters in Delacombe in Ballarat.
The sites were chosen in areas of high growth and demand, following community housing agency bids assessed by Housing Victoria .
The state government has allocated $1.25 billion of its $5.3 billion big housing build program to regional Victoria.
Seven of the 46 projects will include new homes for Aboriginal Victorians.
Victorian vacancy rates are down to 3.6 per cent in Melbourne and 2.1 per cent in regional Victoria, according to Homes Victoria data.
Last week the Council to Homeless Persons called on political parties to commit to building 6000 social properties each year for 10 years and bolster the homelessness prevention worker numbers.
"More renters are being pushed into homelessness because they can't find a rental they can afford," chief executive Jenny Smith said.
Victoria's opposition said a coalition government would immediately move to fast track land and partnerships with Housing Associations, not for profits and the superannuation industry.
Shadow Minister for Housing, Richard Riordan said the Andrews Government had proven over eight years it had no capacity to solve the housing crisis in regional Victoria and an announcement of 683 homes would 'not put a scuff mark on the priority waiting list'.
Australian Associated Press