It is the first initiative of its kind in Italy.
The 'Homeless Village', set up in a former Roma camp, is currently equipped to house 70 people, while the City Angels organisation hopes to raise this number to 300.
Other facilities to be added to the village include a gym, a women's shelter and a place for residents’ pets.
Journalist, professor and City Angels founder, Mario Furlan, launched the initiative at a ribbon-cutting ceremony attended by, among others, Milan City Council Social Policy Chief Pierfrancesco Majorino.
"It's a dream that is being realised," Mr Furlan said.
The City Angels group was founded in 1994, and has since spread from Milan to many other Italian cities, including Rome, Venice and Florence.
The Milan branch of the organisation has twice received the Ambrogino d'Oro, the city's highest official recognition.
With ANSA
