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Vic gov urged to honour Royal Commission promise, restore axed mental health social housing funding

CHIA Vic

Victoria's peak community housing body has warned the state government's decision to axe promised mental health funding to support social housing renters will heap pressure on overstretched homelessness services, hospitals, and courts.

Community Housing Industry Association Victoria (CHIA Vic) is urging the government to restore the funding in the upcoming budget to support 2,000 people living with mental illness in social housing.

In its 2021-22 Budget, the government allocated $40.4 million over four years to provide mental health support services in homes built under the Big Housing Build but it has quietly scrapped the funding. 

The Royal Commission into Victoria’s Mental Health System recommended the government deliver 2,000 mental health supported homes.

“The Victorian government committed to fund services that would help 2,000 renters living with mental illness stay safe and supported in social housing but it has broken its promise,” Ms Toohey said.

“The government is quietly walking away from this Royal Commission recommendation to deliver mental health supported homes for Victorians.

“This funding would allow specialised staff to provide tailored wellbeing care and support to social housing residents living with mental illness.

“This promise was inked in the government’s 2021-22 Budget so this isn’t a new ask or new funding. Reinstating it is crucial and a matter of following through. 

"Not-for-profit community housing organisations have built 500 bespoke homes for people living with a mental illness. The homes are designed to support recovery and have been tenanted in good faith but without the promised government funding these homes are at serious risk of not being properly staffed, leaving renters without the support they need to recover and stay housed. 

“Right now without these support packages, hundreds of Victorians living with mental ill health are sadly being let down, and put at risk of homelessness, hospitalisation and incarceration. 

“The costs of housing stress and homelessness are felt by fellow Victorians in need and across our hospitals, workplaces, judicial system and community services. The Victorian government must use this Budget to honour its commitment to mental health supported social housing. The benefits flow to the Victorians who need it most, to our overstretched services, and to the broader economy."


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Sofie: 0403 920 301