A new development in Corrimal will provide 28 new social and affordable apartments dedicated to older people in the community.
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The development includes a mix of studios and one-bedroom dwellings.
The development is an initiative of the NSW Government's $1.1 billion Social and Affordable Housing Fund (SAHF), which is being delivered in partnership with non-government community housing providers.
Minister for Families, Communities and Disability Services Gareth Ward visited the Princes Highway site on Monday.
He said the brand new homes will be ready for tenants in about two months.
"This week is Homelessness Week, and it is an opportunity to reinforce the NSW Government's strong commitment to delivering a pipeline of contemporary housing to support people who are at risk of homelessness," Mr Ward said.
"These new homes are close to shops, services and public transport, and will add to the growing supply of social and affordable housing in the Illawarra."
The homes were developed, and will be managed by Anglicare Sydney, who are delivering a portfolio of 550 properties across NSW as part of the program.
Anglicare chief operating officer of community services Bill Farrand said tenants would also receive a package of support services.
"Anglicare is creating strong and inclusive communities that give dignity to each resident," Mr Farrand said.
"We are providing the security and comfort of a new home and the support of a real community."
The SAHF is reportedly on track to deliver more than 3400 homes, with close to 2800 properties completed or under construction.
The SAHF is an initiative of Future Directions of Social Housing in NSW, the NSW Government's plan to deliver more and better social housing.
Mr Ward said the NSW Government has pledged to halve street sleeping by 2025.
"In order to do that, you need a range of responses," he said. "You need to be able to provide homes for those who need them, but you also need... Many points along the spectrum to respond to housing difficulty, demand and need.
"(That includes) everything from temporary accommodation through to social, affordable and private accommodation."
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