Non-profit organisation Yarra Community Housing expects its $18million redevelopment of the Barkly Hotel in Footscray to be finished by November this year.

About 75per cent of the cost was paid by the State Government, with the rest coming from YCH and a grant from the hotel's previous owners.

YCH project officer Myra Kitchenman said the organisation was inviting low-income individuals and families from the area to apply for the 71 one- and two-bedroom units, which will cost between $165 and $250 a week to rent.

"It'll provide affordable housing in a neighbourhood that has lots of services and is close to the Footscray CBD," she said.

"We're expecting huge demand. We will have no trouble filling the units."

The development includes a cafe and art space for training and employment.

Last week, the Government launched a blitz on overcrowded rooming houses, appointing an extra 12 Consumer Affairs Victoria inspectors to enforce regulations.

A recent report by the Australian Institute of Health Welfare showed that on census night in 2006, 288 people in the western suburbs were living in rooming houses with no separate bedroom or living room and no private kitchen or bathroom.

Homelessness agencies

say that number could be much higher now due to a shortage of affordable housing in the wake of the global financial crisis.

Maribyrnong Mayor Michael Clark said there was a crisis with rooming houses opening that were overcrowded, in poor condition and exploiting disadvantaged members of society.

"This is the first salvo in seeing this need actively redressed," he said.

"We welcome the additional housing as there is clearly a major housing problem out there."

YCH is holding a public meeting at the Australian Croatian Association, 72 Whitehall Street, Footscray, on Thursday, August 5, from 5.30 to 7.30pm.

To apply for a unit in the new development, call Tracey Haining on 96879955. Applications close on August11.

Grant Reynolds