VicRoads has acquired the vacant sites on Ballarat Road in Footscray over recent years for the potential future widening of Ballarat Road.
Businessmen Brad and Geoff Harris have provided a major philanthropic donation of $4 million, which will fund most of the building costs.
Launch Housing will build the 57 one-bedroom transportable homes, allowing low-income adults and families access to reasonably priced rental properties.
The Department of Health and Human Services will manage the lease of the land which will be set at a period of five years, and Launch Housing will guarantee rehousing the tenants if they need to be relocated before the end of the five-year lease.
Current housing trends indicate that single adults are one of the main groups of people currently experiencing difficulty accessing and maintaining private rentals due to high costs.
Increasing levels of homelessness in Victoria is a serious concern that requires a whole-of-community response. The developments will benefit a growing number of people who are at risk of homelessness due to the lack of affordable housing in Melbourne.
For more information visit the Launch Housing website.