Homelessness Services Commissioning 2026 FAQ
More information about our Homelessness Services Commissioning process.
As of May 2025.
Overall approach
What are the overall goals of this commissioning process?
The objective is to provide stability and increased flexibility to the sector, to enable service continuity and to support services to do the work they do well. Our guiding principle is that the Specialist Homelessness Services (SHS) sector is meeting and exceeding expectations, and we want to work with you as trusted partners to create the conditions you need to do your work.
Commissioning will primarily be led by engaging with existing providers about a new five-year funding agreement with key outputs that can be utilised in contract management.
We will work to reduce the administrative burden of operating these contracts and increase the flexibility for funded services to do the work they know how to do.
Is there any new money available as part of this commissioning process?
There is no increase in funding specifically earmarked for the commissioning of existing SHS Program contracts. We will work within the existing funding envelope to increase flexibility and make it easier for organisations to do their work.
There are a number of associated homelessness programs that are coming to the end of the pilot period. These pilots are being reviewed, with a view to providing greater flexibility and state-wide coverage. These responses will be commissioned in a separate process to existing SHS Program contracts.
Scope
What is in scope for the homelessness commissioning process?
Homelessness Services Commissioning 2026 covers the SHS Program. This includes all current SHS Program contracts. Homeless Youth Assistance Program (HYAP) contracts are included in this process.
Alongside the commissioning of the SHS Program we are reviewing a range of associated homelessness programs that were designed as pilots. We are looking at how we can implement the key functions offered in these programs across the state in a more systematic way. Programs under review include:
- Assertive Outreach (AO/HOST) (funded AO approaches)
- Sustaining Tenancies in Social Housing (STSH)
- Reintegration Housing Support Program (RHSP)
- Mental Health In-Reach
- Universal Screening and Supports (USS).
We understand that uncertainty about the above programs is difficult, and further communication will follow as soon as possible about how the programs may change into the future.
What is the overlap between the homelessness and DFV commissioning processes?
DFV contracts expiring June 2026 are being commissioned in parallel with the SHS Program. We are working together within DCJ through your local Commissioning and Planning team for a smooth and coordinated process and local planning discussions. Commissioning principles and key messages have been prepared together for the SHS and DFV 2026 commissioning processes.
My service was previously considered a Service Support Fund (SSF) service. Where do we fit into this process?
In 2021, all Service Support Fund contracts (SSF) were moved into the SHS Program and are wholly included in this commissioning process.
Commissioning/procurement process
What will the procurement approach be? Will there be competitive tendering?
We will adopt the least disruptive procurement process possible, with the aim of providing stability to the sector and preserving existing collaborative relationships, while meeting NSW Government procurement requirements. DCJ is currently working through the process, and more details will be released as soon as they can be confirmed. We are committed to beginning negotiations for the SHS Program this year so that contracts can be finalised in the first part of next year.
Will there be opportunities for new services to enter the system or for existing services to bid for new contracts or new scope of service?
As part of the review of homelessness pilot programs (separate to SHS Program commissioning), there will be some opportunities for new entrants who currently don’t receive SHS funding but have demonstrated local capability working with people experiencing or at risk of homelessness, to join and bid for new targeted funding sources or to fill priority gaps. The details of this, including the scope and available funding are currently being developed.
Will there be forced partnerships?
There will be no forced partnerships. We value partnership approaches and encourage services to continue partnerships where they are working well.
Services will also have the option to request to exit from partnerships if they prefer to end the existing contract arrangement. There will be an opportunity for these discussions through local planning conversations with DCJ Commissioning and Planning teams. Services can nominate this intention from now if they wish, by contacting their local Commissioning and Planning team.
How long will contracts be for?
All SHS Program contracts will be five years in duration.
How will contracts change?
We will work to reduce the administrative burden of operating these contracts and increase the flexibility for funded services to do the work they know how to do, and to achieve outcomes through local collaborative approaches. The SHS Outcomes Framework will continue to shape contract requirements as we strengthen our ability to measure meaningful outcomes across the sector.
We are still working through the reviews of current standard funding agreements and service specifications and will provide more detail by September 2025.
What is meant by ‘flexible’ or ‘increased flexibility’ within these contracts?
As with changes to program specifications, more detail on this will be available by September 2025. The intent is that providers are able to work across a number of homelessness support functions within their contract, depending on their areas of expertise and the local needs in their communities while reducing the administrative burden of any changes to their service delivery. That flexibility will also apply to stronger engagement within local collaborative approaches between funded services and Homes NSW.
How will my organisation’s contract be negotiated?
The commissioning process will be managed in partnership between Homes NSW and the Strategy, Policy and Commissioning (SPC) teams within DCJ. Contract negotiation discussions will be undertaken with service providers and their local DCJ Commissioning and Planning officer.
Will the transitional properties in our SHS contract be impacted?
Existing arrangements for transitional properties will remain in place. Where an SHS seeks changes to that arrangement, they can work through their Commissioning and Planning local team.
Timeline and steps from here
Will there be new Program Specifications developed, and when will these be available?
Current Program Specifications are being reviewed as part of this process so that the next contract period is stepping us towards the priorities under the soon to be released NSW Homelessness Strategy 2025-2035. Details on any proposed changes will be available well in advance of any contract negotiation activities that are expected to begin later this year.
When will services be invited to negotiate their new contracts?
This will start later in 2025, with local Commissioning and Planning teams as the primary contact for all services.
Other system reform priorities
What are we doing to grow the Aboriginal-led homelessness sector?
We are strongly committed to the continuing growth of the Aboriginal-led sector and supporting the leadership of Aboriginal people and communities within the sector. We will develop a broader strategy that goes beyond the 2026 commissioning timeframe.
How does the commissioning approach align with Homelessness Strategy priorities like local network systems and Housing First principles?
There are a number of important system reform priorities we are continuing to progress under the new NSW Homelessness Strategy 2025-2035. The 2026 and 2031 commissioning processes are important opportunities for progressing these, and are one of many levers we have for change. The nearly-complete Homes For NSW Plan will be an important driver of system reform over the next five years, with a range of strategic projects established under that banner.
The approach to 2026 commissioning will continue to build local service system coordination and collaborative person-centred engagement, including between services locally and between funded services and DCJ. We will invest in enabling these approaches as established collaborations around the state will be recognised and strengthened, while newer collaborations are supported to mature.