More than 100 homes will be built in Melbourne's outer north under Victoria's second social housing "accelerator" project amid weak supply and soaring rents.
Premier Jacinta Allan visited Broadmeadows on Thursday to announce $80 million would be spent on building 120 social homes on vacant land facing Coleraine Street.
New residents have been promised the homes will be modern, comfortable and energy-efficient, and are close to shops, transport, schools and services.
"They'll be a mix of one, two and three bedroom properties," Ms Allan told reporters.
"There will be properties that will be specifically designed for people with a disability."
Construction of the housing development is slated to begin next year, before residents start moving in from 2026.
The project will be jointly funded 50-50 by the state and Commonwealth, with the $40 million federal share to come from the federal government's $2 billion social housing accelerator program.
Victoria was allocated almost $500 million in June under the package as federal Labor tried to curry favour with the Greens to pass its $10 billion housing Australia future fund.
Prime Minister Anthony Albanese and former premier Daniel Andrews last month announced Australia and Victoria's first accelerator project would be to demolish and redevelop two vacant red-brick towers in Carlton.
Mr Albanese said the accelerator program would drive real change and build more homes for Australians.
"This is the Allan government and the Commonwealth working together to get shovels in the ground and roofs over more people's heads," he said in a statement.
Victoria's waiting list for public and community housing grew from 35,392 in June 2017 to 54,945 in March this year.
