The council maintains the 10 units will provide essential accommodation for young people who could otherwise be homeless.

Last week it approved a proposal to build them on Human Services Department land on Coburns Road.

Under state laws, a planning permit is not needed for residential land to be used for community-care housing, so councillors could only vote on the actual buildings.

Residents shouted at councillors during last Monday night's meeting, claiming the 202 objections lodged against the proposal had been ignored.

Lauren Talbot, who has headed the campaign, earlier this year collected more than 600 signatures for a petition tabled in Parliament. She and her neighbours say they're worried about antisocial behaviour, as supervision will only be provided during the day and not in the evenings or on weekends.

"This will develop in to a communal hang-out for young people, creating an unsafe area for local residents," Ms Talbot said. "We deserve to feel safe."

She plans to take the fight to the Victorian Civil and Administrative Tribunal.

The only councillor against the proposal was Sophie Ramsey, who called for full-time supervision at least for the first six months and insisted that priority be given to those aged 16-21. "If these young people need our help, then give them the help they need. They need support and a phone number on a wall

doesn't cut it."

The youth housing will be managed by Hope Street Youth and Family Services, which has been operating in Melton for a year, providing an outreach service for young people, many of whom will apply for the accommodation.

It's designed to provide medium to long-term housing for up to 12 tenants, who will each have a case manager and be involved in employment, training or education.

They would have to be assessed as capable of living independently and would have contracts which if breached would result in eviction.

Cr Bob Turner said the units would keep teens from sleeping on the streets or on other people's couches.

"This facility is not for troubled youth; it is for youth in trouble. They are looking for refuge. We can't turn our back on them. It is a safety net for kids who are at risk."

Hope Street service manager Donna Bennett said the future tenants would be young people currently homeless in Melton.

"We are focusing on young people who are motivated, and this model provides the opportunity for them to test their independent living skills with support."