"As Tauranga grows, so does the social housing need and so does the emergency housing."
The men's shelter took in homeless men and the Women's Refuge provided a safe place for women and children who had been abused, but there were others who fell through the cracks, Mr Wilson said. "There is nowhere for the mum of five kids to go to when the father has gone back to prison or has gone back to the gangs."
Merivale Community Centre manager Tauha Te Kani said he was in favour of anything that could help although it was no "silver bullet". In his 25 years working in social services, Mr Te Kani said he had never seen a situation so bad.
"We have people coming in every day at their wits end," he said. "It's a really, really big issue. It's probably our biggest issue."
He said the lack of housing had flow-on effects and there was now a problem with overcrowding in the suburb.
"I've been to homes here that have had a bed set up in every room bar the toilet, bathroom and laundry."
While he welcomed the announcement of funding for emergency housing, there was no one answer, he said. People needed somewhere permanent so they could put their roots down and become involved in the community, he said.
Bay of Plenty MP Todd Muller agreed improved access to emergency housing was vital to supporting families and communities. "I think it's fantastic that there's a dedicated amount of money with a dedicated amount of places for the region."
While there were currently no emergency housing providers in the Western Bay, Mr Muller said he was confident that with funding available providers would come forward.
How the funding will be used:
* The Ministry of Social Development will contract NGOs to provide about 3000 emergency housing places each year.
* A new emergency housing Special Needs Grant to support individuals and families with the cost of emergency housing for up to seven days if they are unable to access a contracted place.