Middlesbrough Council has received £590,000 as part of a national investment of £84m announced last Friday.
The money will fund five members of staff at Depaul UK, the charity that provides advice and help to homeless people in the town, until 2027.
The extra staff will allow for more targeted work with individuals on the streets.
Middlesbrough Mayor Chris Cooke said: “Providing meaningful support to people who are already homeless and those at risk of losing their home is a huge challenge for us and one we take enormously seriously.
“Our homelessness team and partner agencies deal with some of the most vulnerable people in society and if we can support them to turn their lives around the whole town feels the benefit.
“This extra funding will allow us to do more targeted and personalised work that gives us a better chance of results. The government announcement is great news for us.”
Depaul workers will engage with people in the toughest circumstances and concentrate on their access to health services and the benefits system.
Another element of the funding will be used for personalised support to help people settle into accommodation.
The funding for Depaul is based on the understanding that many vulnerable people prefer to be supported by charities and organisations other than the Council.
In addition to the Depaul funding, the Council will appoint a key member of staff who will focus on prevention of homelessness.
The new funding builds on other changes in recent months designed to meet the challenges posed by homelessness.
In July Mayor Cooke announced a £100,000 investment in new team that is working closely with ten of the town’s most vulnerable people, helping them access housing and support.
And earlier this year the Council’s Executive also approved changes to the way social housing in the town is allocated.
The policy was amended to include new priority for those who are homeless or facing homelessness.
