The success of a Bayswater-supported residential service was a key to developing a $40.4 million State initiative to help keep some of Victoria's most vulnerable citizens housed and healthy.

Minister for Aged Care Gavin Jennings said Viewmont Terrace Supported Residential Service was part of a pilot that would lead to more secure and improved living arrangements for 2,000 frail seniors and people with a disability.

Mr Jennings met Viewmont Terrace residents and staff while launching the new SRS Supporting Accommodation for Vulnerable Victorians initiative.

Targeting people in pension-only Supported Residential Services, the initiative will support the viability of the SRS sector and help residents' accommodation and personal support needs.

It also ties in with the Government's A Fairer Victoria plan to secure accommodation for people with ongoing mental illness, by improving the viability of pension-level SRS.

Mr Jennings said Viewmont Terrace SRS was one of seven facilities that took part in a successful $1 million pilot project to improve the viability of Victoria's pension-level SRS.

'In the pilot at Viewmont, which has 20 residents, additional staff were hired for the morning to help residents get ready for work, which helped several residents retain jobs.

'This new initiative will help slow the decline of pension-only SRS, lower the risk of homelessness and failing health for displaced residents and also reduce disadvantage and social isolation.

Mr Jennings said Viewmont Terrace would continue to receive support from the $40.4 million fund.

'In the six years from 1997 to 2002, the pension-level sector shrank at the rate of 215 beds a year.

'Behind this decline are residents' increasingly complex needs and difficulties proprietors face to run a business when fees are limited to the pension and Commonwealth rent assistance payments.

'Through this initiative, the Government will work with the sector to support residents and improve the industry's viability,' Mr Jennings said.

SRS are privately-owned and run facilities licensed and regulated by the Department of Human Services but they do not receive direct government subsidies.

In Victoria, about 200 SRS provide accommodation and support with daily living for nearly 7,000 people.

Of these, around 70 are pension-level facilities with up to 2,000 residents.

Mr Jennings said the Supporting Accommodation for Vulnerable Victorians plan would provide:

•          Initial comprehensive health and social assessment of about 2,000 SRS residents;

•          Continued stable and affordable housing for 2,000 residents via indirect facility cost relief;

•          Improved integration of pension-level SRS and residents within local service networks;

•          Service co-ordination and support providing more individualised support and activities to pension-level residents. This will target larger facilities or those with a higher number of residents with a psychiatric disability or difficult behaviours.

Mr Jennings said the Department of Human Services would contract non-government service providers to manage indirect facility cost relief funds and provide assessments and/or service co-ordination and support.

'Involving the non-government sector will strengthen accountability and help integrate pension-level SRS and residents into their local service networks.

The Government also has a Bill before Parliament introducing new safeguards for residents including a compulsory, 30-day notice of closure from SRS operators to residents.

'Until now, there has been no obligation on an owner to give notice of closure, which in the past has caused residents inconvenience and distress,' Mr Jennings said.

'The new legislation will give residents more security and DHS the chance to respond in a more timely way in assisting residents.

'The Supported Residential Services Bill also provides an extension of the period of administration when an SRS has failed, from 90 days to 180 days,' Mr Jennings said.