A critical promise for mental health housing support has seemingly been broken, leaving vulnerable Victorians in the lurch years after a landmark royal commission.
The Victorian government is facing accusations of reneging on a vital funding commitment designed to prevent individuals with mental illness from being swallowed by the escalating housing crisis. This pledge was made in direct response to the Royal Commission into Victoria's Mental Health System, which highlighted a severe deficiency in long-term, supported housing as a major flaw in the current mental health framework.
Following the commission's strong recommendation, the government committed to delivering 2,000 social housing homes through its Big Housing Build program. These homes were envisioned not just as places to live, but as supported housing, offering residents tailored mental health treatment and integrated support services. To back this, $40 million was earmarked in the 2021/22 state budget for support funding over four years, with a target completion date of the end of 2024. But here's where it gets controversial... despite thousands of Big Housing Build homes now completed or in progress, this crucial funding has yet to materialize.
The Community Housing Industry Association Victoria (CHIA Vic) has been informed that the funding will not be delivered, a decision they are desperately trying to get the government to reconsider. "We're actually not asking for new investment," stated chief executive Sarah Toohey, "We're asking for the government to deliver the investment that was promised."
A state government spokesperson, while not outright denying the pledge was scrapped, maintained that the government is still dedicated to "delivering the royal commission's vision for supported housing for people living with mental health challenges" and that eligible individuals are receiving various forms of support.
The Revolving Door: Homelessness and Hospitalization
Consider the story of Darren Benson, a 45-year-old who has found stability for the past two-and-a-half years in a self-contained unit with communal areas and on-site support staff. Before this, he struggled with repeated attempts to leave his family home, only to return. After the passing of his mother, his primary carer, he found a home at the Haven Foundation, an organization providing long-term housing for those with mental health challenges. This stable environment has been a lifeline, helping him manage severe anxiety, bouts of psychosis, and chronic nerve pain, all while navigating his grief. "The people help us whenever we need it, and you've got support whenever you need," Darren shared. "If places like this were to disappear, honestly, I think there would be a lot of people with disability out there who would have a lot more struggle each day. This place has actually saved lives."
Darren's experience exemplifies the transformative role a stable home can play for individuals with mental illness, as recognized by the royal commission. However, the commission also warned that a lack of suitable housing often leads to people being discharged from hospitals directly into homelessness or into substandard private residential care. While the 2,000 dwellings were intended to have a significant impact, further investment was deemed essential.
And this is the part most people miss... Ms. Toohey warns that the government's failure to release the initial $40 million could jeopardize the tenancies of residents, as their mental well-being may not be adequately supported. "Our concern is that they really put the residents at risk of losing their tenancies because their mental wellbeing isn't as well-managed as it should be," she explained. "So, this is actually a really good upfront investment for government to make to save at the more acute end of the system."
Is Housing Investment Wasted Without Support?
Allan Fels AO, a former royal commissioner and director at the Haven Foundation, raised a critical point: "Without some ongoing support, the investment in the house tends to be wasted." He emphasized that individuals with severe mental illness require consistent, accessible support, whether on-site or through visiting mental health professionals.
A state government spokesperson mentioned that nearly 300 purpose-built homes have been delivered across Victoria, including some by the Haven Foundation, as part of their ongoing efforts. They described the reform as "complex" and requiring a "phased approach" to ensure people receive the necessary long-term housing and specialist support. They also stated that individuals identified for the program receive support through Area Mental Health and Wellbeing Services, the Early Intervention Psychosocial Support Response, or the NDIS.
However, a June 2024 report from the Victorian auditor-general's office flagged that the government is not on track to meet its Big Housing Build target for people with mental illness, largely due to this funding issue. The report indicated that while the housing minister had approved a plan to meet the royal commission's recommendation using a mix of new and existing dwellings, the mental health minister had yet to sign off. A related recommendation for an additional 500 medium-term supported housing places for young people with mental illness also remains in flux. A government progress tracker for these initiatives hasn't been updated since December 2024.
What are your thoughts on the government's commitment to mental health housing? Do you agree that housing without support is a wasted investment? Share your opinions below!
