Mental health royal commission update silent on hundreds of promised homes

The Allan government says it still plans to deliver 2,000 homes for people with mental health challenges. (ABC News)

Housing and mental health groups are concerned about the state government's handling of a major commitment from the Royal Commission into Victoria's Mental Health System.

A recent inquiry update said the government was delivering about 500 homes tailored for people with mental illness — a quarter of the number it agreed to five years ago.

The government insists all 2,000 homes will be delivered under a "phased approach".

The Victorian government is being pressured to explain its plans for a major housing target set in the wake of the state's mental health royal commission, after a recent update suggested only a quarter of the promised homes were being built.

The inquiry's 2021 findings recognised the link between stable mental health and a secure home, urging the government to deliver 2,000 social housing dwellings with integrated support for people with living mental illness.

Budgets came and went without promised funding being spent, before an update issued on May 18 caused further alarm that the target had fallen to the wayside.

That update only said that the government was delivering 505 purpose-built homes.

Deborah Di Natale is concerned about the lack of updates on nearly 1,500 promised homes. (ABC News: Terry McDonald)

"It says nothing of the remaining 1,495," Deborah Di Natale from the Council to Homeless Persons said.

The state government denied scaling the target back, but did not detail how or when the remaining homes would be built.

"We are still delivering 2,000 homes for Victorians with mental health challenges," a spokesperson said.

"This is a complex reform — it's why we need to take a phased approach to ensure people living with mental health challenges get the long-term housing and specialists support they need."

More than 300 purpose-built homes have so far been delivered, the government said.

A lack of stable housing is hugely detrimental for a person's mental health, says union secretary Paul Healey. (ABC News: Danielle Bonica)

Stakeholders say a shortage of longer-term housing is creating havoc for frontline services, with patients regularly discharged from hospitals back to homelessness.

"Sometimes they get a day or two in the hotel, and sometimes they've been discharged just out to community, to homelessness," Health and Community Services Union state secretary Paul Healey said.

"The other day I had a member describe that they saw a note saying a person was discharged to a safe park, which meant the