Victoria's social housing plan fails to consider demand

The finding was made by the Auditor-General's Office, which said Homes Victoria's modelling showed demand for social housing varied significantly across the state.

The data predicted that by 2036, the local government areas of Casey, Melbourne, Wyndham, Whittlesea and Melton would have the greatest demand for social housing.

However, Homes Victoria's strategy did not prioritise local government areas by their level of demand, the audit found.

"Homes Victoria told us the strategy does not rank or prioritise (local government areas) because it is a high-level, strategic document," the office said in a report tabled in parliament on Wednesday.

"It also told us it is developing a supply and delivery plan and local area asset plans that will include more detailed information on local building priorities.

"However, until this work is finalised there is a risk that Homes Victoria may not be using a statewide view of housing demand to inform and prioritise its local decision-making."

Homes Victoria was on track to build more than 12,000 new social housing homes as part of the "big housing build" project, with 80 per cent on schedule.

The rest of the homes were running three years behind, the auditor-general's office said.

Homes Victoria also did not have a plan to improve its financial sustainability.

It posed a range of options - including becoming exempt from paying rates on homes in Melbourne, Geelong, Ballarat and Greater Bendigo - as potential solutions.

The government has only approved one money-saving initiative to date for Homes Victoria, requiring tenants who live in housing with bulk water meters to contribute to the cost of water.

Homes Victoria accepted all four recommendations from the auditor-general, including that it makes sure staff take into account its area modelling when they plan social housing projects.

Australian Associated Press