The first eight of 16 new community housing units for vulnerable young people were completed during the financial year to provide affordable, long-term rental housing for low-income single people and young, single parents at risk of homelessness.

The two projects, one in North Bendigo and the other in Flora Hill, will cost $4.62 million.

We have contributed $1.85 million and the state government provided $2.78 million from the Victorian Property Fund.

Rents will be capped at 75 per cent of market rent or 30 per cent of household income.

Support services will be a key component of the project.