Prime Minster Bill English and Social Housing Minister Amy Adams have announced two funding boosts intended to combat homelessness.

The Government will provide $27m to help Auckland City Mission build a new 80-unit complex in the head of Auckland, around half of the required amount.

And the "Housing First" programme will be expanded into Auckland, Tauranga, Wellington, and Christchurch, with 100 beds of more into each centre.

Housing First is a wrap-around service that focuses on individual need rather than a one-size-fits all approach. Independent research shows 80 per cent of people who receive the service retain their housing.

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The Government allocated $16.5m to expand Housing First in the budget. This announcement is around the allocation of that amount.

The programme is already in operation in Auckland and Hamilton.

These are both government announcements not campaign promises. They both focus on "rough sleeping" homelessness - rather than people living in crowded houses or garages.

"Many of our chronically homeless are grappling with complex problems such as mental health issues or addiction to drugs or alcohol," Adams said.

"Housing First quickly moves rough sleepers into appropriate housing and then immediately provides tailored wrap-around services to address the issues that led to their homelessness."

English said no service could eliminate homelessness entirely, and told the story of a relative of his who stayed on the street despite multiple attempts to get him housing.

Auckland City Mission CEO Chris Farrelly said he has been planning the new building, which would replace their current headquarters, for ten years.

He said the Government was funding about half of the cost of the build, providing another step on the path to getting it built.

"We're pleased with the half, now we have to go and get the other half across the line," Farrelly said.

"We want to start next year, we want it open and running in 2020."

The Housing First programme is operated by a five NGOs, including the Wise Group.

CE Julie Nelson said Housing First could end rough sleeping.

"It's a proven model, it's got good evidence behind it," Nelson said.

"It's about one size fits one. It's about working with people, not putting restrictions around the type of housing, or what they might need to do to pick up the keys to that housing."

Labour's Phil Twyford said both initiatives were good ideas but their announcement this close to the election was "cynical politicking".

"This is cynical politicking three weeks out from the election from a government that has totally dropped the ball on housing and homelessness over nine years, and now they are spraying around cash like there's no tomorrow on the eve of the election. I think people will judge them on their track record not what they are promising three weeks out from the election," Twyford said.

"It's been our policy for ages to support Housing First as a very successful strategy to deal with chronic homelessness and rough sleepers. But it's not a good solution to the explosion of people who cannot find affordable rental housing."

He supported the Auckland City Mission funding too but noted that it wouldn't deliver any new beds until at least 2020, when they were needed immediately.

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