East West houses to help homeless

Twenty homes that were compulsorily acquired for the dumped East West Link project will now be used to help homeless Victorians.

Collingwood Football Club Foundation's Magpie Nest housing project was handed the keys to the first home on Sunday and say the houses will take at least 50 people off the streets.

Victorian Housing Minister Martin Foley said people who had their homes compulsorily acquired had the chance to buy them back and now the remaining houses would become homes for vulnerable families.

Magpie Nest housing project residents are given the chance to join in community activities such as sport, arts and cultural programs to help rebuild their connection to the community. They are also given case management support from the Salvation Army.

The Salvation Army Major Brendan Nottle said the houses would allow them to help more people.

"Magpie Nest takes people off the streets and gives them the support they need to rebuild their lives," he said.