Rotorua will be receiving a slice of $4 million of Government funding to prevent and reduce homelessness, the associate housing minister announced on Friday.
However, Rotorua MP Todd McClay says the funding won't even scratch the surface of the city's "homeless problem".
More than $5.6 million has been spent on emergency housing and special needs grants in Rotorua during the past three months - a jump of nearly $1 million compared with the previous three months.
The Government fund will support initiatives led by Te Taumata o Ngāti Whakaue Iho Ake Trust in partnership with Manaaki Ora Trust.
A spokeswoman for the trust said the funding will allow them to speed up outcomes for whānau as well as do prevention work - with an iwi led approach based on the values of mana whenua.
Rotorua is one of five locations around the country to receive the first round of funding from the $16.6m local innovation and partnership fund.
Speaking on behalf of Te Taumata o Ngāti Whakaue Iho Ake Trust, general manager Tina Leach said homelessness was complex and required unity in a cross-sector approach.
"We are looking at a Te Arawa Housing Alliance to help accelerate outcomes for our whānau and having an iwi led approach based on the values of mana whenua will be exciting," she said.
The funding will also allow for preventive work to be done by developing a financial capability package that is based on their values.
She said this would demystify conversations about money management, saving and budgeting that can pre-empt some of the financial issues that could lead to homelessness.
"We are looking forward to partnering and working alongside others to get the mahi done."
Associate Housing Minister Marama Davidson said the fund was a key part of the Government's homelessness action plan.
"Over $4 million has been allocated to projects that address homelessness in local communities," Davidson said.
"The fund allows the government to partner with local providers or organisations who are doing innovative mahi to reduce homelessness in their area. The initiatives funded in this first round have a strong focus on Māori, rangatahi and the rainbow community."
The initiatives offer new and tailored strategies to disrupt the cycle of homelessness for communities experiencing discrimination and isolation, she said.
"We have inherited a homelessness crisis that has been decades in the making, we know that homelessness disconnects people from their community, and has long-term impacts on health and well-being.
"Addressing homelessness is a key priority for this Government, the projects funded today build on the knowledge, strengths and connections of local organisations and people."
Davidson said she was pleased to work together with community partners to ensure homelessness was prevented or was rare, brief and non-recurring.
Rotorua National MP Todd McClay said he had a lot of respect for the work of the two trusts involved in the Government grant but was concerned about the city's portion of $4m.
"The amount that's been allocated to them doesn't even come close to scratching the surface of the homelessness problem in Rotorua.
"How many houses will be built with the Government's announcement? I think the answer is none which will be disappointing for Rotorua."
He believed the challenge faced by the city was rising rents which didn't match wage increases and the Government using Rotorua as a "dumping ground" for homeless people.
The Ministry of Social Development has previously said it "does not proactively relocate people to Rotorua".
Round two of the Local Innovation and Partnership Fund is expected to open in mid-2021.
Successful Local Innovation and Partnership Fund grant recipient
• Takiri Mai o Te Ata Collective in partnership with Petone Budget Service Inc
Te Taiwhenua o Heretaunga in partnership with Whatever it Takes Trust
• RainbowYOUTH in partnership with Te Ngākau Kahukura and Auckland Council
• One Double Five Whare Awhina Community House in partnership with Mahitahi Hauora, Whangarei Youth Space, Ngati Hine Health Trust and Pehiaweri Marae
• Kāhui Tū Kaha in partnership with Auckland Council Auckland Housing First Collective, South Pacific Pride, Arohanui ki te Tangata and Northland Urban Rural Mission