The 15-unit development on Maxwell St provides long-term housing along with wrap-around support services on-site.
Beyond Housing chief executive Celia Adams said it was based on the Housing First principles.
“By addressing housing as the primary need first, Housing First creates an environment where residents can effectively engage with support services, pursue personal goals and achieve long-term stability,” Ms Adams said.
The $10.3 million project is being led by Beyond Housing and funded through the Victorian Government’s Regional Supportive Housing Fund.
Services and specialised supports will be provided by Primary Care Connect, VincentCare and Rumbalara Aboriginal Co-operative.
Victorian Housing Minister Harriet Shing said the government wanted to ensure that Aboriginal Victorians had access to secure and culturally safe housing, especially because First Peoples were over-represented in homelessness statistics.
“It is so important that we’re able to partner with Aboriginal organisations to make sure that people have the opportunities, the care, support and respect as they move from homelessness into stable, long-term accommodation,” Ms Shing said.
Ms Shing said wrap-around supports meant it was less likely for people to cycle back into homelessness after they were housed, and also gave people the chance to re-enter the workforce or pursue further education.
This development will be the first of its kind in the Shepparton area.
According to Ms Adams, the units have been designed with sustainability and energy efficiency in mind.
“We need our housing to be not just affordable to rent, but affordable to live in,” she said.
Rent is based on a resident’s financial situation, with people paying no more than 30 per cent of their income.
The 10 one-bedroom and five two-bedroom units are slated to be completed by the end of this year, or early in 2026.
The housing will be set aside for people who are experiencing chronic homelessness, which means they have presented on multiple occasions within the homelessness system.
For people in this situation, Ms Adams said something had clearly not worked within the continuum of services.
“We can’t stop trying, so let’s try something different that’s backed by research and evidence — we know that has worked in the US, the UK and European countries,” she said.
Ms Adams said introducing this approach in the Shepparton area was also about accountability.
“When we put our hands up for public money, we need to be accountable for that money, and that’s about delivering on the outcomes that we all collectively need, which is people to have access to safe, secure, affordable accommodation with the supports they need to be able to thrive.”
Ms Adams said it was not sufficient to simply continue doing the same thing and hoping for a different outcome.
Ms Shing said the development would have economic impacts in the area, providing construction jobs, potentially allowing people to re-enter the workforce, and likely reducing the number of times those who become housed will present to services such as emergency departments.