Community housing advocates have praised fast-tracked funding to build an extra 5000 social homes to urgently address Australia's shortfall.
Housing Minister Clare O'Neil announced a new partnership with the states and territories on Monday to deliver the additional homes under the Housing Australia Future Fund.
The fund will support the delivery of 20,000 social and 10,000 affordable homes.
Community Housing Industry Association chief executive Wendy Hayhurst said the announcement would help get thousands of people into homes.
"We are particularly pleased to see the government's strong encouragement for states and territories to partner with community housing providers in delivering these homes," she said.
"Our sector has consistently demonstrated its capacity to leverage government investment to create additional social and affordable housing supply."
The extra homes will be built as part of a fast-tracked second round of the housing fund which will deliver $3 billion in joint federal and state funding.
The money will be directed to states and territories that can rapidly deliver more housing through contributions such as offering new land.
The jurisdictions will be encouraged to partner with community housing providers and will have to show the projects add to housing stock.
Money will be provided on a "use it or lose it basis".
Ms Hayhurst said that approach, combined with a speedier time frame for submissions, showed the government understood the sense of urgency needed.
The extra capacity is expected to alleviate rent pressures and help thousands of vulnerable Australians get into social housing.
Applications for state and territory governments to submit projects will open this week and close at the end of January.
The federal government will also fast-track the third round of the Housing Australia Future Fund, with applications to open in mid-2025.
The government has asked Housing Australia - the nation's independent housing agency - to set up a working group with peak community housing bodies to engage with the sector.
Ms O'Neil said the way out of the nation's housing crisis was to build.
"While we're working with states, territories and industry to bring tens of thousands of homes online as quickly as possible - Peter Dutton is promising to scrap Labor's housing fund and the 30,000 homes that come with it," she said.
"This partnership is about building thousands of homes quickly, and it's one part of Labor's ambitious plan to build more houses right across Australia, making housing more abundant and affordable."
