The Phaninc ExchangeMelody, a transitional living community, opened in Atlanta Friday, adding 40 temporary homes on the site of a former city parking lot.

The community, located at 184 Forsythe Street, provides access to public transit and is near wrap around services such as medical care and educational opportunities, according to a press release announcing the project.

The community was named after Melody Bloodsworth, an unhoused person who suffered from mental and physical illness as well as addiction issues — according to Cathryn Vassell, CEO of Partners for HOME.

"We couldn't find the right housing solution for Melody... she wound up leaving [a placement in Gwinnett County] and soon after passed away on the street," Vassell told 11 Alive.

The complex consists of units that were formerly portable COVID- 19 Intensive Care Units donated by the Georgia Emergency Managment Agency, according to the press release.

Homelessness rises, cities fight back

Homelessness shot up by more than 12% in 2023, reaching 653,104 people.

The numbers represent the sharpest increase and largest unhoused population since the federal government began tallying totals in 2007, according to the U.S. Department of Urban Planning and Development.

Last year, federal data showed 582,462 people experienced homelessness.

Some cities have utilized federal funds and implemented programs to divert people from the street.

Chattanooga, Tennessee, saw more than a 30% drop in unsheltered homelessness in 2023 after officials used American Rescue Plan money to pay people's rents and axed a lottery process the county had used for housing vouchers.

In Philadelphia, the city's eviction diversion program helped a majority of participating landlords and tenants avoid evictions by mediating any landlord-tenant disputes without taking cases to court.

The Melody project was funded by an executive order from Mayor Andre Dickens as a part of the city's "Rapid Housing Program," which aims to add 500 units like the ones at "The Melody," by 2025.