A boarding house accused of bringing "unacceptable" and "unsocial" behaviour to the affluent inner Melbourne suburb of St Kilda will be immediately shut down and turned into a women's shelter.

Victoria's Housing Minister Martin Foley announced the Government is spending $6 million to shut down and refit The Regal on Little Grey Street.

Focus on the area's woes came after radio host Kate Langbroek used her show to reveal she was the victim of an alleged home-invasion last week.

She released a picture of the bruise she sustained after an altercation with a man accused of trying to kick in the front door of her home.

Victoria Police say a 38-year-old St Kilda man was charged with aggravated burglary and trespass, and has been remanded in custody to appear in court in May.

But Mr Foley said the timing of the Government's intervention had nothing to do with Ms Langbroek.

Older women facing growing homelessness

"We do so because what has happened in that community is unacceptable," Mr Foley said.

"It will, instead of housing single men, now house self-contained units for 37 older women.

"Women over 55 are our fastest-growing group of people facing housing and homelessness stress in our community."

The Regal was dubbed the "New Gatwick" after another nearby former rooming house The Gatwick was shut down last year.

The Regal has 48 shared units, half of which have already been closed and its tenants rehoused.

Its remaining tenants will be moved to other properties.

"I've been working on this matter for some months, as evidenced by the fact that the facility is already nearly half closed down, half empty," Mr Foley said.

He said the Government will also fund a CCTV extension which currently runs along Fitzroy Street and will feed to the St Kilda police station.

'Don't stereotype vulnerable people'

The announcement was met with caution by some in the welfare sector.

Paul Linossier of Uniting, the community services organisation of the Uniting Church in Victoria and Tasmania, said community housing residents should not be stereotyped as anti-social in behaviour.

He said governments and community service organisations needed to work harder to ensure that vulnerable members of the community find appropriate housing and receive the right support.

"Discussions shouldn't be centred around the closure of the boarding house, rather we have to address the core issues that affect the people that live in this type of accommodation — the spiralling cost of housing, the decline of low-skilled jobs, the lack of provision of appropriate services to tackle mental health or alcohol and other drug issues," Mr Linossier said.