The Not For Profit's buildings in St Kilda will be given a $27.3M facelift in four stages after the Port Phillip Council approved its development application.
The upgrade will merge its two aged care homes to increase the number of beds from 83 to 93 and see its other accommodation and allied health services expanded.
The Federal Government has coughed up $8.85M for the project, with the rest of the funding being raised through donations and the sale of an asset. Work is planned to start this month, due for completion in 2021.
Chief executive Cathy Humphrey says the upgrades will allow the Mission to better support the increasing numbers of homeless people in the area.
"Homelessness in the City of Port Phillip has risen by 32 per cent over the past five years," she said. "We know from our experience that providing integrated services is more efficient and effective," she said.
According to the Mission, life on the streets means many of its clients are going into aged care at a younger age than the rest of the population. Nearly 40% of its aged care residents are under 64 years of age and almost 75% are under 74 on admission.
