A housing fund to boost the number of long-term affordable rentals will support the development of a 140-unit build-to-rent project in Woden.
The ACT government will contribute money for half of the units, which are being developed by the Canberra Southern Cross Club and, community housing provider, CHC Australia.
The money will come from the territory government's $60 million affordable housing project fund, announced in last year's budget, which provides money to shovel-ready affordable rental projects.
The government has said it has agreed to support six projects through the fund, totalling about 280 new affordable rentals.
The build-to-rent units are part of plans from the Canberra Southern Cross Club for a larger development on the site of a former pitch and putt course.
The government has also given $500,000 for planning work to start on the long-awaited MyHome project in Curtin. The project, based on an existing development in Queanbeyan, provides long-term accommodation for people with a mental illness.
Labor and the Greens promised to deliver the project during this Assembly term. Money was also promised in the parties' 2016 power-sharing agreement but no money was designated and the team was left frustrated after territory budgets did not allocate funding.
The money has been allocated to the projects as part of the government's mid-year budget review.
"The initiatives announced today will help ensure we have the right mix of housing options to meet the needs of our growing city, which is on track to reach 500,000 people by 2027," Chief Minister Andrew Barr said.
CHC Australia chief executive Andrew Hannan said there was a dire shortage of rental accommodation for low-income earners and he was delighted the ACT government provided the funding.
"Together with our valued partner, the Canberra Southern Cross Club, we cannot wait to turn soil on our new mixed-tenure market and affordable Build-to-Rent development in Phillip that will deliver 70 affordable rental units for the community," he said.
