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Housing advocates are warning a NSW government homelessness program risks putting participants back on the streets as they enter the broader rental market.
The government's Together Home program has been a game changer for more than 1000 people during the past three years, according to the Community Housing Industry Association NSW (CHIA NSW).
However, with the majority of participants due to leave the program by the end of the year, hundreds face homelessness as support dries up.
CHIA NSW chief executive Mark Degotardi said nearly 700 individuals and families were at risk of slipping back into homelessness.
Realising the problem, the NSW government has committed to build 220 properties for Together Home participants in partnership with community housing providers.
The CHIA NSW said the investment was very welcome but it will only provide homes for about 20 per cent of participants.
"That's a great start but it's not enough," Mr Degotardi said.
"When people exit the Together Home program, they are facing a rental market which has record-low vacancy rates and record-high rents and a social housing waitlist of almost 58,000 households."
CHIA NSW is calling for $25 million annual funding commitment to keep the Together Home program going beyond 2024, as well as an additional 200 social housing properties every year for people exiting the program.
The Together Home program not only puts a roof over people's heads, but provides additional support to improve their overall personal wellbeing, allowing them to undergo further education and training, or secure a job.
Mr Degotardi says despite the program's success, it needs to be backed by sufficient social housing stock once participants come out the other end.
