A site has been secured to create a home for Mandurah's homeless.
And it will be bigger than originally promised - now with 50 self-contained apartments.
The 2021-22 State Budget released on Thursday includes $28.1 million for the complex, which will be built on the corner of Allnutt and Dower streets in central Mandurah.
The site was selected because it is close to public transport and a range of public services.
It will couple permanent housing with support services to help people with complex needs to stay off the streets for good.
Common Ground residential apartment complexes are purpose-built for people who are sleeping rough, experiencing chronic homelessness or on low incomes.
The new facility will also contribute to the stock of public housing properties in the Mandurah region, as the typical mix of residents in Common Ground complexes is 50 per cent people who were experiencing homelessness prior to moving in, and 50 per cent people on low incomes.
The Common Ground model is designed to integrate the building and residents into their local community, with commercial and social enterprise spaces built in to facilitate engagement.
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A total of $73.5 million has now been committed by the State and Federal governments to the Common Ground facilities being developed in WA, with more 110 apartments being built in the Perth central business district.
"Homelessness is a complex issue, but we are determined to plan and deliver innovative projects to help those in need," Premier Mark McGowan said.
"Mandurah Common Ground will support a Housing First approach, linking its residents with specialist support services to address their individual needs and help them to keep a roof over their head," Community Services minister Simone McGurk said.
"The Common Ground model has a strong track record of improving long-term outcomes for vulnerable people in other jurisdictions, so I am confident the benefits of Mandurah Common Ground will not only be felt by residents, but by the broader Peel community."
"This facility will increase the number of permanent homes for rough sleepers and people on low incomes in Mandurah by 50, with the benefits to be felt across the community," Mandurah MP David Templeman said.
"The announcement of the location for WA's second Common Ground facility is a major step in our efforts to end homelessness in Mandurah."