Social & affordable housing

Councils from across Victoria are impacted by and deeply concerned about the current housing crisis.

They see and deal directly with the fallout from a lack of affordable homes in their communities every day. Provision and funding of social housing is a Commonwealth and state government responsibility, but rough sleeping, lack of affordable housing and reliance on more transient forms of housing such as caravan parks and rooming houses impacts the individual, the community and the broader economy. Many councils have developed housing strategies to address local housing issues.

Current priorities

We work with Homes Victoria and the Community Housing Industry Association (CHIA Vic) to expedite resolution of policy issues and facilitate information sharing between councils. In 2022, we consulted with councils to develop a Victorian Local Government Social and Affordable Housing Position Statement (PDF - 223KB).

Housing has been a recurring theme at recent MAV State Councils, including resolutions on mandatory inclusionary zoning, sustainable funding for social and public housing and short-term rental accommodation. The MAV State Council is the guiding policy forum of the MAV, comprising councillor representatives from all Victorian member councils.

We also support the Victorian Inter Council Affordable Housing Forum and work closely with the Australian Local Government Association (ALGA) to engage with Commonwealth policy and funding initiatives.

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Local Government's Housing Innovation Program

A partnership between MAV and the City of Greater Dandenong | Commonwealth Housing Support Program

Commissioned by the MAV and delivered by a team of architects, economists, urban designers and researchers, the Housing Innovation Program translates policy ambition into tested, place-based solutions to give councils the evidence, the designs and the frameworks they need to act.

The program directly addresses the National Housing Accord's target of 1.2 million new homes over five years, placing local government at the centre of the delivery effort. The work identifies how councils can be as active partners and community leaders.

This program is proof that local government can lead.

The program produced two linked reports for councils to use together:

  • Part A: The Housing Action Blueprint — a practical call to action setting out what councils should do and why.
  • Part B: The Evidence Base for Action — the full research, design testing and feasibility analysis underpinning every recommendation.

Part A: Local Government's Housing Action Blueprint

The Blueprint is the sector's authoritative guide to council-led housing delivery. Grounded in real-world design testing, feasibility analysis and industry consultation, it gives councils a clear evidence base for decision-making and a practical framework for action - from asset identification through to partnership structuring and community engagement.

Download the Part A Blueprint (PDF - 11.9MB)

Part B: Evidence Base for Action

Every recommendation in the Blueprint is grounded in the Evidence Base.

This is the full body of research, analysis, design testing and feasibility modelling the program produced. It is structured to be used by councils, housing officers, town planners and delivery partners as a practical reference.

The Evidence Base is particularly valuable for councils preparing housing strategies, scoping development on public land, engaging with CHOs or delivery partners, or making the case for investment.

The Evidence Base

The 13-section Evidence Base covers:

  • Sections 1–2. Project team, process and the policy context for housing reform in Victoria and nationally .
  • Section 3. Industry insights: candid perspectives from six housing sector leaders on the real barriers to delivery and what councils can do about them.
  • Section 4. Architectural case studies: in-depth analysis of three completed higher-density housing projects demonstrating design excellence, liveability and sustainability.
  • Section 5. Local Government Action Case Studies — Effective Council Action: International and Domestic Best Practice for Locally-Led Housing Delivery (prepared by RMIT).

Access the full RMIT report (PDF - 45.9MB)

  • Sections 6–12. Full design testing reports for each of the six prototype sites, including drawings, costings and feasibility analysis.
  • Section 13. Consolidated discussion and action plan for councils.
  • Section 14. Conclusion.

Download the Part B Evidence Base: Sections 1–9 [Pages 1-338] (PDF - 45.9MB)

Download the Part B Evidence Base: Sections 10–14 [Pages 339-554] (PDF - 29.4MB)

Six prototype sites - tested, designed and costed

The program developed and tested prototype designs on six real council and government-owned sites across metropolitan Melbourne and regional Victoria. Each site was selected to demonstrate a different development context, scale and typology to create a replicable evidence base they can apply to similar sites in their own areas.

New Build — Redevelopment Adaptive Reuse Case study links
Site 1: Former Wonthaggi Secondary School Bass Coast Shire
76 dwellings (60 apartments + 16 townhouses). A large, well-located site at the town centre edge demonstrates how surplus education land can be transformed into a walkable mixed residential precinct with new street connections.
Site 4: 5 Osborne Avenue, Springvale
City of Greater Dandenong
157 dwellings. A triangular island site with three street frontages, 400m from Springvale Station. Adaptive reuse of the existing community sports building anchors a courtyard housing design — showing how community uses and housing can coexist.
Part B — Section 7 — Wonthaggi (PDF)

Part B — Section 10 — Osborne Ave (PDF)
Site 2: Eaglehawk Station Precinct
City of Greater Bendigo / VicTrack
163 dwellings. Dual-aspect apartments in linear buildings parallel to the rail corridor, 3–5 storeys. A replicable model for transit-oriented development on underused station land across regional Victoria.
Site 5: 9–15 Brindisi Street, Mentone City of Kingston
211 dwellings. A former aged-care facility adapted into courtyard housing. The existing building layout is retained and extended, with a new 7-storey building at the street frontage. Among the strongest feasibility cases in the program.
Part B — Section 8 — Eaglehawk (PDF)

Part B — Section 12 — Brindisi St (PDF)
Site 3: 4–16 and 32–34 Warwick Avenue, Springvale
City of Greater Dandenong
128 dwellings across two parcels, currently at-grade car parks. The concept consolidates public parking in the constrained southern parcel and delivers a 10-storey courtyard building on the larger northern site — demonstrating how to sequence adjacent parcels for maximum yield.
Site 6: 272–284 Lonsdale Street, Dandenong City of Greater Dandenong
78 dwellings in a compact 8-storey mixed-use building. Adaptive reuse retains the handsome curved brick facade of the existing building. Retail at ground floor activates the Lonsdale Street boulevard and frames the entrance to Central Dandenong.
Part B — Section 9 — Warwick Ave (PDF)
 
Part B — Section 12 — Lonsdale St (PDF)

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Submissions and briefs

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Resources

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Finance and funding sources

  • Housing Australia (Commonwealth) provides concessional finance to community housing organisations.
  • National Rental Affordability Scheme (NRAS) provides incentives for investors to build new dwellings and rent them to low-and middle-income households at 80% of market rents for 10 years. As of June 2021, the NRAS was providing support for about 5,400 affordable homes in Victoria, with approximately 2,800 managed by community housing organisations and 1,500 by for-profit providers, and a small number by other charities. This scheme is under review.
  • National Housing Accord (PDF - 515KB) announced on 25 October 2022 with the aim of building one million new well-located homes over five years from 2024. Brings together all tiers of government, institutional investors and the construction sector.
  • Victorian Social Housing Growth Fund (state) provides funding from the Big Housing Build to community housing providers (funding mostly now committed).