The Government will build 130 more homes for Victorian families and boost programs to tackle homelessness, thanks to the 2006–07 State Budget.

Not-for-profit housing associations will receive $25.5 million to build more homes across the State with the first new homes for families on low incomes ready to rent from next year.

Housing Minister Candy Broad said the Budget also provided $25 million to fund a blitz on maintenance and upgrade ageing public housing infrastructure.

'We want tenants to be safe and comfortable in their own homes, which is why the Government will fast-track these works.'

Ms Broad said the Budget also provided new funding for practical assistance for young people at risk of homelessness and homeless people with mental health issues.

The $6.7 million Youth Futures Program over four years will provide homes for 200 young Victorians who leave refuges but are not ready to live independently in their own home.

'They will receive short term accommodation, practical training in basic living skills such as shopping and budgeting and referral to educational opportunities to get them on a path to a job.'

The Government will provide $4.2 million over four years to create a private rental brokerage service to help 350 young people wanting to rent in the private market with practical advice and advocacy.

'We will provide further early assistance to Victorians at risk of homelessness to help them go on to a stable and secure home of their own,' Ms Broad said.

As part of the mental health package, the Budget also provides $4.1 million to continue to expand a series of innovative pilot programs to assist people with mental health issues.

These programs identify people in hospital with mental health issues who may be at risk of homelessness following discharge from hospital.

They are put in contact with housing and support services with follow-up in the crucial early months.

The Budget also delivers on Victoria's commitment to provide an additional $13.8 million over four years to the Supported Accommodation and Assistance Program (SAAP) for targeted assistance for crisis accommodation.