The hostel, which is still under construction in Northolt Grange, west London, will provide 10 one-bedroom flats for mothers with babies.
Residents will be given help with parenting skills and job searching, and be taught independent living skills such as budgeting and cooking.
The 1.2m hostel is supported by 870,000 from The Housing Corporation, with the rest coming from YMCA West London.
Clare Scott Booth, chief executive of the organisation, said the project had been driven by the shortage of adequate supported accommodation for teenage mothers.
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