At the May meeting, council also determined to advertise an intention to lease land it owns in Deane Ct, Shepparton, to house the facility.
Any planning application will be considered at a future meeting.
Kids Under Cover approached council this year seeking land for the development of a Village 21 program, which is an innovative model seeking to assist at-risk young people to successfully transition to independent living from out-of-home care.
Kids Under Cover is a not-for-profit organisation that combines accommodation with education scholarships as a practical way to reduce the risk of youth becoming homeless.
The supported accommodation project would house six young people aged between 18 and 21 who have exited foster care, and two carers.
The village includes a communal building containing a kitchen, living room and laundry, three two-bedroom studios with a bathroom and two one-bedroom studios for the live-in mentors, and a communal BBQ area.
Cr Seema Abdullah told the May meeting the commencement of the leasing process was only the start of community consultation but said she supported the project.
“There is a need for more social housing, and this project is going to provide support to young people to reduce the likelihood of them slipping into a crisis situation or long-term homelessness,” she said.
Cr Abdullah said the land was appropriately sized but had the disadvantage of being away from the CBD and with inadequate access to transport.
“The organisation has considered all those factors and has chosen the site; we will see,” she said.
Cr Abdullah said while it was encouraging to see so many applications for social and affordable housing projects coming before council, there was a need for a more formal strategy on council’s identification and provision of land through sale or lease to support new projects.
Cr Anthony Brophy said Village 21 was a proven program and the land being sought was not being utilised.
“It aligns very strongly with the Greater Shepparton Affordable Housing Strategy,” he said.
The motion was carried unopposed.