Victoria’s homelessness peak bodies are assusing the state government of selling public land to private developers when they say they should be building more social housing.

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Victoria’s homelessness peak bodies have accused the state government of selling public land to private developers when they should be building more social housing.

A site at 18a Miller St, Preston has been picked to be part of the state government’s Small Sites pilot program which is looking for developers to deliver 260 homes across Miller St and three other sites, with only 10 per cent allocated to affordable housing.

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Council to Homeless Persons chief executive Deborah Di Natale said the government needed to fund public and community housing at the Preston site and similar lots, urging them to scrap plans to sell it to private developers.

“It defies logic that the government would walk back its commitment to build desperately needed public and community housing on this site in the middle of a homelessness crisis,” Ms Di Natale said.

“Every Victorian needs a safe place to live, with rents that they can afford. When so many of us don’t have that, that should be the government’s first priority.

“There are more than 58,000 families waiting years for social housing in Victoria, which has the lowest proportion of social housing – just 2.8 per cent of dwellings – in the country.”

Ms Di Natale said the Preston site should be used for social housing.

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Victoria needed to build 6000 new public and community dwellings a year over the next decade to meet demand, the homelessness peak body noted.

Community Housing Industry Association Victoria chief executive Sarah Toohey said once land was sold, it couldn’t be bought back.

“We need to make sure that public land is prioritised for public and community housing,” Ms Toohey said.

“During Victoria’s brutal housing crisis, to deliver 10 per cent affordable housing on surplus land that’s earmarked for redevelopment is not enough.

“If land is to be sold, the target should be lifted to at least 20 per cent social housing, and affordable rental housing for moderate income workers.”

Ms Toohey said the percentage for affordable housing in new developments should be doubled.

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A Victorian government spokesperson said the site at Miller St, Preston was never part of the Big Housing Build.

“Under the landmark $5.3 billion Big Housing Build we’re on track to deliver more than 12,000 new homes right across Victoria. More than 9600 of these are underway or complete,” the spokesman said.

In a report from the Victorian Auditor-General’s Office, Homes Victoria stated it wouldn’t be able to address rising cost pressures and build its 12,000 new social housing home target in the Big Housing Build — which is running three years behind schedule — within its $5.3b budget without changing direction.

As a way to cut costs, Homes Victoria would instead to reduce the number of homes it would build itself on publicly-owned land and increase the number built and managed by community housing providers.

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