One Bay of Plenty community centre manager, Tauha Te Kani, says homelessness is becoming the number one social issue he deals with.
He says the lack of affordable housing is contributing to overcrowding and he has visited homes that have a bed set up in every room bar the toilet, bathroom and laundry.
Such cases highlight the fact that some families have been falling between the gaps.
This week's announcement will hopefully mean more families will find the support they need to get back on their feet.
Social Housing Minister Paula Bennett says 60 emergency housing places could be made available in the Bay of Plenty as part of the $41.1 million national funding package.
The money will also be used to provide 350 to 360 spaces in Auckland, about 100 in Canterbury and about 20 for each of the smaller centres. Individuals or families will be able to stay for a maximum of three months, meaning 240 Bay people or families will be helped each year.
The initiative will hopefully make a world of difference to those falling on hard times.