Hillbrook House, which cost 3.2m, will offer accommodation for up to 42 vulnerable residents aged 16 to 30. Thirty places come with an ensuite kitchen and bathroom, while the remaining 12 have shared kitchens and bathrooms.
Ian Burks, chief executive of Reigate and Redhill YMCA, said: "This has taken nine years to get off the ground, but there is a really big demand for this type of facility in the area."
A Local Authority Social Housing Grant covered the construction costs.
Furnishings and equipment were funded by donations and smaller grants.
"We worked with the local authority housing department to put in our application for funding on the very last day," said Burks. "But it was an excellent example of how well the local authority and the voluntary sector can work together."
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