Reid's Guest House on Lydiard Street remains closed after a fire broke out in the lower floor of the facility late in the evening on February 10.

Managing organisation Uniting Vic.Tas relocated the guests on the night of the emergency to its Breezeway facility and staff have worked hard since to ensure all affected had access to suitable longer term options.

"We know there are already very limited housing options available within the Ballarat region, let alone for those who are vulnerable," general manager north and west Victoria Annette Kelly-Egerton said.

"This has made finding local accommodation for the guests a real challenge.

"Working with our community partners, we canvassed not only Ballarat but as far as Melbourne exploring potential options for any guests who still required accommodation.

"This situation underlines the need for more investment in social housing right across the Ballarat region.

"It's why we at Uniting Vic.Tas have committed $20 million to a plan to build 500 new social housing properties in Victoria and Tasmania over the next five years."

RELATED COVERAGE: Fire at Reid's Guest House leaves 50 people searching for accommodation

Group manager housing, home and crisis support Jerry Ham said work was underway to complete necessary repairs to Reid's to ensure guests were able to return as soon as possible.

"The safety of our staff and consumers is our highest priority and that's why Reid's Guest House will remain closed until further notice," she said in a statement.

"This was a difficult decision, but we want to make sure it is safe before allowing our staff and guests to return."

Ballarat's Criminal Investigation Unit confirmed a male in his 30s was charged last week with criminal damage by fire and conduct endangering serious injury to the residents.

The man will next appear at the Ballarat court in May.

A police member said there was extensive damage to the residence hall in the lower floor of the building.

Guests at Reid's are generally offered an initial stay of up to 60 nights and staff provide support to find long-term housing towards the end of their stay.

Data released last year found Ballarat's rate of homelessness was almost double the national average.

More than 1900 people experiencing or were at risk of homelessness in Ballarat in the 2020-2021 financial year.

Ballarat had 189 clients per 10,000 population compared with 108 clients per 10,000 population nationally.

High rates of family violence and a lack of affordable housing options are some of the factors driving the crisis.

Hundreds of households are waiting on the priority list for housing and support in Ballarat at any one time.

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