"With the current economic climate we're seeing an increase in people approaching the service as homeless as a result of losing their private rental from loss of employment."

Independent housing organisation Wintringham targets elderly people who are homeless or at risk of becoming homeless.

It has housing in Flemington that can accommodate seven men and two women.

Northern region community services manager Kate Rice said Wintringham had 150 properties across Melbourne and about 170 people on waiting lists.

"We try and assist frail and elderly people to access public housing.

"Our biggest issue is that our own housing waiting list far exceeds the number of places we can offer."

Ms Rice said people aged over 55 generally had higher needs than others and therefore found it more difficult to find suitable public housing.

"We work with one of the most vulnerable client groups.

"They've got very special housing requirements which means they often wait longer to get public housing."

State Opposition housing spokeswoman Wendy Lovell said the demand for public housing had reached a seven-year high, with 38,980 families on the waiting list.

"The ever-increasing waiting list highlights the Government's failure to deliver effective affordable housing policies over the past 10 years. The failure has led to a crisis across all levels of housing in Victoria."

A State Government spokesman said despite increasing numbers applying for public housing in Maribyrnong and Moonee Valley, the figures had dropped by 1000 since 1999.

He said the Government was increasing housing stocks in the area, including working with Yarra Community Housing Metro West to redevelop the Barkly Street Hotel in Footscray to create 70 affordable rental homes by the end of the year.

Moonee Valley councillor Rose Iser said the council was developing a housing strategy that would look at where affordable housing can be promoted within the municipality.

Cr Iser welcomed the spotlight being placed on the housing issue.

"I certainly have met people who have been waiting considerable lengths of time for public housing.

"There's been a long waiting list for a considerable time. The recent attention to it is welcome."

Cr Iser said that finding space for new public housing in Moonee Valley would be tough but a challenge that the council and government should tackle together.

"Flemington and Ascot Vale are inner-city areas and it is tough to find land that can accommodate affordable housing."

THE REAL STORIES

WINTRINGHAM'S Assistance with Care and Housing for the Aged (ACHA) city/inner west program received 24 referrals from elderly Moonee Valley residents from July 1 last year to May 31. Six people were aged 50-59; 11 in the 60-69 bracket; six people aged 70-79; and three people were between 80-89. The main reason for referral was risk of homelessness due to notices to vacate from private rental properties. NTVs were issued because the landlord wanted to sell the property (9) or because the resident was in rent arrears because the rent was unaffordable (4).

Example 1

An 89-year-old man and his 80-year-old wife were issued with a 60-day NTV after living in a private rental property for 25 years. The landlord was selling the property. The couple, not eligible for Office of Housing assistance, were looking for private rental and at risk of homelessness.

Example 2

An 89-year-old woman was issued with an NTV. The landlord was selling the property, which was very run down. The woman received sponsorship from Moonee Valley Council into an Office of Housing property.

Example 3

A 68-year-old woman and her adult disabled son were paying $900 a month in private rental. They reported that they have been on the Office of Housing waiting list for 15 years.