"They often prefer areas with security and lighting, not just for safety reasons but because their young children get frightened in dark areas and cannot settle."
Among the findings were that the risk of becoming homeless had increased in Tauranga, and that homeless mothers were reluctant to approach social agencies out of fear of having their children uplifted.
Hatch also found that children being moved around the homes of families and friends were becoming "transient and unsettled".
The report urged that the problem be tackled with a multi-agency approach focusing on 19 recommendations.
These included improving data gathering, establishing a "mobile housing clinic", loaning money to people at risk of eviction, providing more housing, and creating an environment where parents could approach Child, Youth and Family without fear of losing their children.
Child, Youth and Family regional director Sue Critchley said homelessness was not in itself a reason for CYF to be involved.
If there were no other concerns around the children's wellbeing, CYF would link a family struggling with housing with agencies such as Work and Income and community groups.
"No child is removed from their parents' care unless the concerns are of a serious nature, such as issues around family violence, mental health, or addiction," she said.
"Ultimately we need to believe the children are at unacceptable risk of harm and a family court judge agrees."
Tauranga City Council community development manager Meagan Holmes said staff had become increasingly aware of homelessness during the past 18 months.
"There's been an increase in the number of homeless people sleeping in or using the public toilets since this time last year," she said.
"There has also been an increase in the amount of consumables being used, such as toilet paper and liquid soap."
When asked if libraries were affected, Holmes said they tended to be busier in winter as homeless people sought warmth.
The steering group was created in June after workshops involving the police, district health board, night shelter, churches and government agencies.
The group includes a wide range of agencies, including the Tauranga City and Western Bay District councils.
Steering group spokeswoman Steph O'Sullivan said there were "some real home truths" in the report.
Key goals for the group were to improve co-ordination between agencies dealing with homelessness and to investigate successful programmes in Auckland and Hamilton, she said.
Key findings
• The risk of becoming homeless in Tauranga has increased
• The city's homeless are either "transitional" or "chronic"
• Families with children are becoming "transient and unsettled"
• Mothers hide their homelessness, fearing CYF
• A men's shelter has given single men some security
• Emergency accommodation for women and children is lacking
• Homelessness is undermining health and social services
• A lack of affordable housing is a problem for low-income people