At a housing facility in the western Sydney suburb of Campbelltown, 69-year-old Colin and 23-year-old Molly are discovering a shared past.

Through Colin’s books on World War II, it emerges that his father and Molly's great-grandfather were both survivors on the same torpedoed Japanese prisoner ship and were in the same prisoner-of-war camp.

For student Molly, it’s a revelation that has unlocked fresh interest in her family history.

“I'm speechless to know that a member of my family knew a member of Colin's family,” she tells SBS News.

“It’s brought us closer together.”

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Colin and Molly are taking part in a unique social experiment in Sydney known as intergenerational living.

Since May, the homelessness charity Dignity has been offering its Dignity Studios apartments to 15 residents, aged up to 24 or over 55, targeting locals.

Funding is provided by the Department of Communities and Justice's South Western Sydney District, a partner in the project, and the studios are for RentChoice Youth clients and older Rent Choice clients who are yet to attain suitable private rental accommodation.

Organisers now hope it might prove a viable model for transitional housing for the homeless.

Trauma of homelessness

According to Census data, Australia’s overall rate of homelessness rose by 4.6 per cent between 2011 and 2016 - including a 28 per cent increase for the over 55s.

In February, the NSW Government signed a global agreement to halve street homelessness across the state by 2025, while Dignity was recently named as Telstra's Business of the Year for its work in crisis accommodation, assisting up to 250 people each night at 27 sites across NSW.

The intergenerational living studios are being trialled for up to a year. It is a concept Dignity says was derived from the success of Humanitas, a Dutch aged care facility that provides free accommodation to students in exchange for time spent with older residents.

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“I didn’t have a lot of time dealing with older people”, says Molly, who comes from a background of drugs and violence.

“It’s turned out very well.”

“They've all come from a place of trauma or crisis that has led to the homelessness,” says Dignity’s founder and chief executive Suzanne Hopman.

“And then, of course, the trauma and crisis of homelessness itself.”

“The young people may have had experiences with the older generation that haven’t been positive, and may be apprehensive about talking to older people. This community breaks down those barriers.”

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Former farmhand Colin was made redundant last year due to the drought and living with estranged relatives in Sydney didn't work out.

He's happy to be a resident in the NSW Government-subsidised facility and thinks the cross-generational concept behind it works well.

“The younger ones are able to teach us about mobiles, computers and so forth,” he says.

“It’s also beneficial to them, to talk to us older people, and hear that you don’t need to go out to a pub every night to enjoy yourself.”

Newcomer James, 21, has a troubled past.

He found common ground with Colin over the facility's shared vegetable garden and enjoys the sense of community.

“I prefer a mix of ages,” he says. “They can teach me about life.”

Support for unique needs

For the younger cohort like James, the 75 per cent rental support from the NSW Government, is closely tied to the pursuit of work or education.

Each resident also has a case manager to guide him or her through aspects of past trauma - a specialist in mental health, domestic violence, Indigenous issues, men’s health, or homelessness itself - as well as support workers on-site.

“If they’ve come from a history of a violent relationship or family violence, moving into a community they may not have those ‘neighbour’ skills,” Ms Hopman says.

“So here, having a support worker on-site to help them gain skills and navigate that space has been really valuable.

A six-month internal review of the project is underway, but Ms Hopman says residents surveyed have shown a dramatic improvement in their physical and mental health.

Youth homelessness researcher, associate professor David Mackenzie of the University of South Australia, says he is cautiously optimistic based on the special support provided.

“There is a risk when you put people together who have high needs and who may have gone through trauma, that in fact, their interaction may not be positive.“

“And I think that the caseworkers would be trying to facilitate the most positive outcomes of that interaction as possible. It will be very interesting to see how successful it is over time”.

The aim, at least, is for all residents to leave armed with positive experiences to take into the private rental market.

Beyond that, Dignity believes it may have found a viable model for transitional housing - although discussions with the NSW Government on a second facility have yet to take place.

More information about Rent Choice can be found here.

Support for people experiencing homelessness can be found at homelessnessaustralia.org.au