Social enterprise Homes for Homes will provide $200,000 to two social and affordable housing projects in the ACT.
YWCA Canberra will receive half of the funding to help it build 10 dwellings to support women and children experiencing domestic violence.
The remaining $100,000 will go to Community Housing Canberra to build two homes for women transitioning from custody to secure housing.
Homes for Homes was established by social enterprise The Big Issue to tackle homelessness.
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Homes for Homes chief executive Steven Persson said he expected demand for social housing to grow over the next 15 years.
"By 2036, the gap between the supply and demand for social housing is projected to grow to as much as one million properties - posing a major challenge for our community at large," Mr Persson said.
Federal Minister for Homelessness, Social and Community Housing Michael Sukkar said the government had committed $6 million in seed funding to Homes for Homes since the 2017-18 budget.
"The seed funding provided to Homes for Homes has established a long-term approach to creating more social and affordable housing," Mr Sukkar said.
"We are pleased that they are already making a tangible difference with announcements such as those made today."
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