The NSW government's change to homelessness services was rushed and lacked transparency, according to an independent report into the program that sparked widespread closures and takeovers of specialist refuges.

An evaluation of the government's Going Home Staying Home reforms by KPMG found the program divided homelessness services into "winners and losers".

A homeless man appeals for help in Sydney. Credit:Tanya Lake

Under the shake-up, homelessness services were required to enter into a competitive tender process to win funding.

"The decision to open up funding for homelessness services to a competitive bidding process ultimately drove an outcome where there were clear winners and losers," the report found. "This is the aspect of reform that has attracted the most criticism."