A peak social service body has warned Ballarat could be facing one of its "most serious housing crisis" if funding is not extended for a vital homelessness program.
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The Homelessness to a Home (H2H) scheme, created by the state government during the height of pandemic, was formed to help relocate those who were either sleeping rough or in a hotel to more sustainable housing.
Since launching, it is estimated the initiative has aided about 2000 Victorians including 74 households in the Ballarat region.
However, while the state government committed about $43 million to the program last year, the upcoming May budget sees this funding slashed by more than half with only $12 million allocated.
Council to Homeless Persons chief executive Deborah Di Natale said if more money was not provided to the scheme it could result in "entrenched homelessness" for the region.
"In terms of regional Victoria, we know that they're doing it really tough. We know that cost of living is impacting on everybody and if you look at the rentals as well, the vacancy rate is at an all time low," Ms Di Natale said.
"So a combination of all those external factors, it's likely that we will see homelessness on the rise and that's why when we've got a program that is as successful as Homelessness to a Home, we really need to make sure that this government continues to fund it."
Council to Homeless Persons has proposed $224.4 million to be allocated to the initiative over the next four years. This would equate to roughly $56.1 million per year.
Ms Di Natale said seeing this financial commitment enacted would be a "real sign" the state government understood the plight of regional Victorians battling housing stress.
"Many people who have access to Homelessness to a Home program are people who have been long term rough sleepers and and we know that the Homelessness to a Home program has the promise to deliver a 90 per cent (housing) sustainment rate," she said.
"So it is a no brainer for the government to continue to fund this."
She also highlighted such a move by the state government would send a strong message to other nations about how Australia tackles homelessness particularly in the lead up to the 2026 Commonwealth Games.
"It's absolutely critical that people are in stable housing and knowing the world's eyes are on regional Victoria during the Commonwealth Games might just give government the push it needs," Ms Di Natale said.
In the Ballarat region, the H2H scheme is delivered through Uniting VicTas and CatholicCare Victoria.
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This number comprised 152 dwellings with occupants over 25 years old and 79 of these households consisting of families.
A study by the Community Housing Industry Association also found Ballarat ranked among the highest for housing stress with 6.4 per cent of the region's population facing some form of homelessness.
CORRECTION: An earlier version of this story listed the Homelessness to a Home (H2H) scheme as a Federal Government project. This was incorrect. It was created and funded by the Victorian state government.
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