Commissioning of homelessness services 2026 Frequently Asked Questions (FAQs)

Scope 

What is in scope for the homelessness commissioning process?

Homelessness Services Commissioning 2026 covers the SHS Program. This includes all current SHS Program contracts. Homeless Youth Assistance Program (HYAP) contracts are included in this process.

Domestic Violence Response Enhancement (DVRE) services will be commissioned through the Homelessness Commissioning process as they remain connected with SHS Contracts.

Alongside the commissioning of the SHS Program, we are reviewing a range of homelessness pilots and initiatives Homes NSW are looking at how we can implement the key functions offered in these programs across the state in a more systematic way. Programs under review include:

• Assertive Outreach (AO) (funded AO approaches)
• Sustaining Tenancies in Social Housing (STSH)
• Reintegration Housing Support Program (RHSP)
• Mental Health In-Reach
• Universal Screening and Supports (USS)
• Supported Transition and Engagement Program (STEP A and B)
• Youth Initiative.

We understand that uncertainty about the above programs is difficult, and further communication will follow as soon as possible. 

What is the overlap between the homelessness and Domestic and Family Violence (DFV) commissioning processes? 

Most DFV contracts expiring June 2026 are being commissioned in parallel with the SHS Program. We are working together within our DCJ colleagues through your local Commissioning and Planning team for a smooth and coordinated process and local planning discussions. Commissioning principles and key messages have been prepared together for the SHS and DFV 2026 commissioning processes. 

Are Core and Cluster women’s refuges in scope for homelessness commissioning?

Core and Cluster women’s refuges fall under DFV programs. For further information, please visit the DFV Commissioning 2026 webpage. Women’s refuges funded under the SHS program remain in scope for homelessness commissioning. 

My service was previously considered a Service Support Fund (SSF) service. Where do we fit into this process?

In 2021, all Service Support Fund contracts (SSF) were moved into the SHS Program and are wholly included in the SHS commissioning process.

Are Temporary Accommodation and Supported Temporary Accommodation contracts in scope for homelessness commissioning?

No, they are not in scope for the commissioning of homelessness services.

SHS and HYAP commissioning and procurement process

What will the procurement approach be? 

To ensure continuity while meeting NSW Government procurement requirements, Homes NSW will primarily use a direct negotiation approach. This approach enables minimal or no changes to the majority of contracts. A limited invited tender process may apply where a lead provider intends to end their SHS contract with DCJ. In these scenarios, DCJ contract managers will work closely with providers throughout this process. 

Will there be opportunities for new services to enter the system or for existing services to bid for new contracts or new scope of service?

As part of commissioning, there will not be any additional opportunities through the SHS Program for new services to enter the system or existing services to bid for new contracts at this time.

As part of the broader reform work driven by the NSW Homelessness Strategy 2025-2035, Homes NSW is exploring other opportunities for new and existing SHS. Further information will be provided as this work progresses.

Will there be forced partnerships?

There will be no forced partnerships. We value partnership approaches and encourage services to continue partnerships where they are working well.

Services will also have the option to request to exit from partnerships if they prefer to end the existing contract arrangement. There will be an opportunity for these discussions through local planning conversations with DCJ Commissioning and Planning teams. Services can nominate this intention from now if they wish, by contacting their DCJ contract manager.

What will happen with existing subcontracting arrangements?

As contracts are new, starting from 1 July 2026, all existing sub-contracting arrangements must be reviewed by lead providers. If a provider wishes to continue with an existing arrangement, new agreements with the existing subcontractor are required and must be approved by DCJ.

Lead providers are requested to finalise subcontractor agreements with their subcontractor partners prior to signing the funding agreement with DCJ for 1 July 2026 implementation and be outlined in the Agreement for Funding of Services - Schedule.

During the 2026- 2031 contract term Lead providers must:

• Will work closely with their subcontracted parties and maintain communications from DCJ is relayed.
• Ensure subcontractors are kept informed of contractual and program information.

Can an existing subcontractor request an agreement with DCJ?

As a direct negotiation approach is being applied, engagement will be limited to the current lead provider. Under DCJ’s Subcontracting Policy and Procedures, DCJ cannot enter into a direct contractual relationship with subcontracted agencies.

How long will contracts be for?

All SHS Program contracts will be five years in duration. NSW Government remains committed to secure jobs and funding certainty. A new contract term of 5 years supports the Secure Jobs and Funding Certainty roadmap, ensuring service continuity, sector stability, and stronger local integration. 

Will there be changes/redistribution of existing SHS Program funding?

No. Under the new agreements, there will be no reduction in funding, reflecting the NSW Government’s commitment to long term certainty for service providers and their staff.

Will indexation be applied in future funding years?

Indexation is an annual decision made by NSW Treasury. DCJ will inform eligible service providers annually of any decision to apply indexation.

How will contracts change?

We will work to reduce the administrative burden of operating these contracts and increase the flexibility for funded services to do the work they know how to do, and to achieve outcomes through local collaborative approaches. The SHS Outcomes Framework will continue to shape contract requirements as we strengthen our ability to measure meaningful outcomes across the sector.

Will there be updates to the Program Specifications?

The 2026 SHS Program Specifications are more comprehensive, future-focused, and aligned with broader strategic reforms. There has been a renewed focus on improving the layout of the specifications, providing clearer practice expectations, aligning with new Homes NSW strategic directions and signalling future reform agendas.

Key changes include;

• Reflecting the vision of the new NSW Homelessness Strategy 2025-2035 as well as a horizons approach to future change and reform.
• Providing information on the National Agreement on Social Housing and Homelessness (NASHH) 2024.
• Providing updated information on Community Housing Provider (CHP) regulation, SHS accommodation models, relevant accommodation policies and the types of support provided under the SHS Program.
• Updating general and contract specific program expectations, milestones, reporting and program governance.
• Expanding practice guidance and expectations
• Updating information on learning and development support and resources as well as tools for SHS staff.
• A re-design of the order of the specifications to improve useability and flow.

Is there any further updates on SHS client charges in the 2026 SHS Program Specifications?

Communications were released to the sector on the 25% client accommodation charges on 24 December 2025. Per these communications, further detail including definitions of inclusions in business-as-usual accommodation charges versus enhanced settings will be included in Version 2 of the SHS Access, Eviction and Withdrawal of Services Policy.

Peak and sector consultation has and will continue to be conducted on this issue, and changes will be reflected in the SHS Program Specifications accordingly.

What is the approach for HYAP?

Existing HYAP contracts will be commissioned for 5-years, there will be no reduction in HYAP funding. HYAP core functions will remain the same, and HYAP will not be incorporated into SHS contracts.

When will the Youth Initiative be reviewed?

Youth Initiative is under review along with other homelessness pilots and initiatives. While we are unable to provide an update at this stage, we will update Youth Initiative providers directly when more information becomes available.

What is meant by ‘flexible’ or ‘increased flexibility’ within these contracts?

The intent is that providers are able to work across a number of homelessness support functions within their contract, depending on their areas of expertise and the local needs in their communities while reducing the administrative burden of any changes to their service delivery. The SHS Program and its specifications will adopt an ‘Horizons’ approach to change – recognising that not all strategic elements can be fully defined or operationalised at the outset of the contract period. This approach enables Homes NSW to work collaboratively with service providers and other stakeholders to progressively implement changes that align with the Homelessness Strategy’s objectives. Contractual arrangements will include provisions for negotiated amendments to individual Agreement for Funding of Services - Schedules, where such changes are agreed by all parties and are consistent with procurement principles. 

How do we determine what changes can be made?

The negotiation approach will involve minimal or no changes to the majority of contracts. A matrix of change detailing the minimal negotiable adjustments, was discussed during recent sector webinars. Recordings of these sessions can be accessed on the Commissioning of homelessness services 2026 webpage under ‘More information about commissioning’. In addition, a Fact Sheet containing the matrix will be shared with existing service providers. During negotiations, providers are encouraged to speak with their DCJ contract manager regarding any proposed changes.

Is there any flexibility to consider a reduction of client numbers during the negotiation process?

The SHS Commissioning approach requires for minimal to no changes in most contracts, this extends to client numbers. Current client targets were established six or more years ago and are considered minimum expectations. While funding has not increased, minimum client targets have also not been raised. 

Homes NSW recognises that the ongoing housing crisis, rising costs and limited exit options may impact a provider’s ability to meet these targets. Where providers can demonstrate that their contracted client numbers should be reduced due to these pressures — supported by evidence of how the change would affect service delivery and local need — they are encouraged to discuss this with the Commissioning and Planning teams during contract negotiations.

How will my organisation’s contract be negotiated?

DCJ contract managers will contact SHS providers by 23 December 2025, inviting them to participate in the negotiation process. 

Will accreditation be considered in the commissioning process?

The Department continues to monitor and embed the accreditation requirements for all homelessness services providers. Since 30 June 2024, providers contracted to deliver DCJ homelessness services for more than 12 months, are required to:

• achieve accreditation with one of the approved standards and accreditation programs, within their contract term
• maintain compliance with approved standards.

To ensure the commissioning process progresses smoothly, providers that are due to be accredited for the first time, or are due for re-accreditation, by 30 June 2026 need to provide a copy of their accreditation certificate and report to Homes NSW by emailing the SHSprogram@homes.nsw.gov.au  mailbox.  Please advise your local DCJ Commissioning and Planning team if your organisation cannot achieve accreditation or re-accreditation by 30 June 2026.

For more information about accreditation requirements, please visit the accreditation for homelessness providers page on the NSW Government website.

Organisations can access resources to support their accreditation or re-accreditation process on the Homelessness NSW website, or by contacting Homelessness NSW via email ASESsupport@homelessnessnsw.org.au.

Will the crisis accommodation or transitional properties in our SHS contract be impacted?

Existing arrangements for crisis accommodation and transitional housing properties will remain in place. Where an SHS provider seeks changes to that arrangement, they will need to discuss this with their DCJ contract manager.

Property schedules will be reviewed as part of the commissioning process, please speak with your DCJ contract manager if you are aware of changes to be made.

Under the terms of the lease, the lessee is solely responsible and required to undertake all necessary maintenance and repairs and to ensure that properties are adequately insured. To support these arrangements for properties leased as crisis-refuges, the Homes NSW Housing Programs and Products (HPP) directorate (not a party to the lease) pays for planned and responsive maintenance, repairs, and insurance under the Refuge Maintenance Program (RMP). Community Housing Providers (CHPs) are contracted to deliver maintenance services under the RMP and are required to work closely with Specialist Homelessness Services (SHS) to provide timely, quality and client sensitive delivery of works.

This arrangement does not apply to transitional housing properties which remain the responsibility of the CHP.

If your organisation has a query or complaint about maintenance, please contact your RMP provider or email HPP-Maintenance@homes.nsw.gov.au

What should providers do if they believe information contained in Property Schedules is incorrect?

Properties attached to SHS contracts are listed in Attachment 2 and/or 3 of draft Agreement for Funding of Services documents. If providers believe these property details are incorrect, they should raise this with their DCJ contract manager who can escalate Homes NSW if required. 

Completing the Part A and Part B Forms

Should providers complete the Part A and Part B forms without receiving the Draft SHS Funding Agreement Schedule from their DCJ contract manager?

All providers should have received a draft Agreement for Funding of Services with their invitation to negotiate email. If they haven’t, providers should request this from their DCJ contract manager. Providers will need the draft Agreement for Funding of Services Schedule to complete Part A and B forms.

Why are providers required to sign Part A and B as a Deed Poll?

As Part A and Part B contain important organisational information and commitments, DCJ needs to ensure that there is truth to this documentation and that the people providing this information are authorised by the organisation to do so.

DCJ requires that Part A and B be signed as a Deed Poll in lieu of the digital signature that would be generated if the procurement process was completed on Procurement Central.

Executing these documents as a deed poll allows DCJ to comply with our legal, governance, procurement and ICAC obligations while minimising administrative burden on providers.

Part A and Part B forms must be signed by the appropriate representative before being submitted to the DCJ contract manager.

Can negotiation meetings be scheduled where an organisation provides the information being sought in the forms, however, before the forms are executed as a Deed Poll?

Part A and Part B (and the conflict-of-interest form if relevant) must be completed in full and signed before contract negotiation/s and cannot be provided incrementally or later on in the commissioning process. Contract negotiations can be scheduled before submission to ensure commissioning timeframes are met.

If an organisation is concerned, they cannot provide the requisite information by the scheduled contract negotiation, they should contact their CPO to push back the contract negotiation meeting.

Are providers required to complete all sections of the Part B Form budget?

Yes, all sections of the Part B Form budget template must be completed.

As Homes NSW have secured approval for a direct negotiation approach and are avoiding a full tender process for the 2026 SHS Commissioning, providers are required to submit a detailed proposal for each contract to determine value for money and appropriate use of government funds. This is in line with ICAC guidelines for management direct negotiations and the risks associated with direct negotiations.

As part of determining value for money, the proposal must be fully assessed, which is why the Part B Form requires comprehensive budget information. This level of detail supports transparency, accountability, and defensible decision‑making in the use of public funds and ensures compliance with NSW Government procurement and probity obligations.

Homes NSW acknowledges that for some providers, there may be some administrative impact  in supplying this information, but Homes NSW must ensure the procurement process is conducted in accordance with Homes NSW’s legal, governance, procurement and ICAC obligations.

This budget is used for assessment purposes as part of the overall Direct Negotiation process. It is a proposed budget for the first year of the contract and is designed to provide an overview of the expected expenditure of the contract, gives visibility of the expenditure of government funds, and helps to ensure value for money as part of the overall SHS commissioning process.

As it is part of the overall proposal, Homes NSW understand that there may be some changes between submission of Part B and the final executed contract. Homes NSW will not be replicating these budgets within the Agreement for Funding of Services Schedule and encourage the flexible use of program funds to best meet the requirements of the service and organisation.

When completing the salaries and wages section, providers are welcome to list each position type in a separate row rather than requiring a separate row for each staff member – i.e. if there are 5 caseworkers who work the same hours at the same grade/pay, they can be grouped together and indicated by Caseworker x 5. Additionally, providers are welcome to submit an excel file in lieu of completing the word doc template if that is easier, provided the excel file contains all the requested budgetary information in the Part B Form.

Can the Part B Form budget be updated between contract negotiations and contract finalisation?

The Budget template in Part B must be completed in full before contract negotiation/s take place.

This budget is used for assessment purposes as part of the overall Direct Negotiation process. It is a proposed budget for the first year of the contract and is designed to provide an overview of the expected expenditure of the contract, gives visibility of the expenditure of government funds, and helps to ensure value for money as part of the overall SHS commissioning process. It is not a contractual commitment.

As it is part of the overall proposal, DCJ understand that there may be some changes between submission of Part B and the final executed contract. DCJ will not be replicating these budgets within the Agreement for Funding of Services Schedule and encourage the flexible use of program funds to best meet the requirements of the service and organisation.

Can providers with multiple SHS contracts submit a single budget that includes all their DCJ funding?

A separate Part A and Part B form must be completed for each individual contract, and the budget template should only reflect the budget for that particular contract.

What should providers do if they disagree with any clauses listed in the Agreement for Funding of Services Schedule?

If a provider disagrees with any clause(s) of the draft Schedule they can select “No, we disagree with clause(s) of the draft Schedule. We’d like to propose the following changes:” in the Part A form and then list their proposed changes. If the proposed changes are lengthy, providers are welcome to include them as an attachment to Part A.

Are DCJ contract managers able to assist providers to assess the resource implications of procurement requirements such as Modern Slavery provisions?

Providers are welcome to discuss any concerns they have about meeting the Modern Slavery, Aboriginal, SME and Local Participation Plan requirements. Contract managers can then escalate these concerns as required. 

Small and Medium Enterprise (SME) and Local Participation Plans and Aboriginal Participation Plans 

How can providers determine whether they need to submit a Small and Medium Enterprise (SME) and Local Participation Plans and Aboriginal Participation Plan?

For SHS contracts with a total value between $3 million ex GST and $7.5 million ex GST, providers are required to submit a SME & Local Participation Plan.

For SHS contracts with a total value over $7.5 million ex GST, providers are required to submit an Aboriginal, SME and Local Participation Plan.

What evidence is can a provider use to demonstrate they are a small or medium enterprise?

When completing the SME and Local Participation Plan Template providers are asked to confirm whether they are an SME. The plan template does not prescribe that evidence be provided but, but as the Part B Form (of which the SME and Local Participation Plan is a part of) is signed by Deed Poll, service providers are required to respond to these questions truthfully.

How can providers meet the participation requirements in the Aboriginal Participation Plans?

For the Aboriginal Participation Plan, the 1.5% Aboriginal participation requirement can be met through one OR a combination of the following:

• A minimum 1.5% of project value directed toward Aboriginal businesses through sub-contracting
• A minimum 1.5% of the project workforce to be Aboriginal people across the life of the project
• A minimum 1.5% of the project value directed toward capability and capacity building of Aboriginal people or businesses

Can SHS providers seek exemption from completing SME and Regional Participation Plans and Aboriginal Participation Plans as they are non-profit organisations?

Homes NSW has been advised by DCJ Strategic Procurement that the Aboriginal Participations Plans and SME and Local Participation Plans do not specifically provide any exemptions to NGOs.

Are the SME and Regional Participation Plans and Aboriginal Participation Plans required to be completed upon the submission of the Form B, or can they be provided during contract finalisation or management?

Providers are required to submit the SME and Regional Participation Plans and Aboriginal Participation plans when they return the Part A, Part B and COI (if relevant) forms to their contract manager. This must occur prior to contract negotiation meetings occurring.

The submission of these plans is a mandatory requirement for SHS contracts over the relevant total contract value threshold. By requiring providers to submit these before contract negotiations, DCJ can ensure that providers are meeting these requirements and allows sufficient time for any amendments to occur if required.

Resources to help providers with compliance requirements
The resources below provide further details about Modern Slavery requirements, the SME and Regional Participation Plan and the Aboriginal Participation Plan.

Modern Slavery
•   Buy NSW website - Modern slavery and procurement
•   Modern slavery fact sheet (PDF 176.47KB)
 

SME and Regional Participation Plan
•    Buy NSW website - Small and Medium Enterprise and Regional Procurement Policy
 

Aboriginal Participation
•    Buy NSW website – Aboriginal Procurement Policy
 

Timeframes and steps from here

What resources are available? 

Existing SHS and HYAP providers have been invited to information sessions hosted by DCJ. These sessions will explain the direct negotiation process and support providers through the process. Recordings of these sessions will be available on the Commissioning homelessness services webpage.

When will services be invited to negotiate their new contracts?

By 23 December 2025, DCJ contract managers will email providers with the relevant documentation and a Fact Sheet to guide them through the negotiation process. The negotiations process will run from December 2025 through to 31 March 2026, allowing sufficient time to finalise contracts between April and May 2026, in order for new contracts to commence from 1 July 2026. This schedule considers other commissioning activities that providers may be involved in. 

Who should we contact if we have further queries?

DCJ contract managers are the primary contact for any contract specific enquiries.

Will the FAQs be updated based on sector questions?

We have already received a range of questions from the sector about the commissioning program and associated strategic initiatives. If you have questions, we encourage you to talk to your DCJ contract manager in the first instance.

The FAQ resource will be updated regularly to respond to questions when further information becomes available.  

Other system reform priorities

What are we doing to grow the Aboriginal-led homelessness sector?

The NSW Homelessness Strategy 2025-2035 (released in August 2025) outlines the NSW government’s commitment to support the expansion of the Aboriginal-led homelessness sector, and increase and retain Aboriginal staff, particularly in regional areas. Homes NSW will work with the sector to develop an action plan for Aboriginal people under the Strategy that will enable us to design and implement culturally appropriate responses.

How are we supporting young people experiencing homelessness in NSW?

The NSW Homelessness Strategy 2025-2035 recognises that children and young people are significantly overrepresented in homelessness statistics in NSW. The Strategy is working to embed person-centred approaches in policy and practice. However, we know that transitioning to a person-centred system will take time, so we are working with the sector to develop an action plan for children and young people that will enable us to design and implement age-appropriate responses, so no one falls through the gap.

How does the commissioning approach align with Homelessness Strategy priorities like local network systems and Housing First principles?

There are a number of important system reform priorities we are continuing to progress under the new NSW Homelessness Strategy 2025-2035. The 2026 and 2031 commissioning processes are important opportunities for progressing these and are one of many levers we have for change. The Homes for NSW Strategy will be an important driver of system reform over the next five years, with a range of strategic projects established under that banner.

The approach to 2026 commissioning will continue to build local service system coordination and collaborative person-centred engagement between local funded services and DCJ. We will invest in supporting the local collaboration networks, established networks around the state will be strengthened, while newer collaborations are supported to mature and grow.

What is the Homelessness Innovation Fund (HIF)?

The NSW Government’s 2024/25 Budget provided $527.6 million in funding over four years for homelessness services as part of a record $6.6 billion investment to reduce homelessness and to increase and improve social housing. As part of that announcement, 100 million over 4 years was allocated to the HIF.

The first HIF allocations occurred in 2024/25 and funded 70 projects to implement new service approaches and investment in targeted early intervention or prevention responses. For more information visit the Homelessness Innovation Fund (HIF) 2025-26 webpage.

What is the National Housing Infrastructure Facility – Crisis and Transitional Housing (NHIF CT)?

The NHIF CT provides grants and loans to support the delivery of housing for vulnerable Australians, including women and children experiencing DFV and young people at risk of, or experiencing homelessness. It is an Australian Government program administered by Housing Australia.

For more information visit the Housing Australia NHIF CT webpage. 

Will there be consultation with the sector regarding Embedding a Horizons Base Approach in SHS Program?

Homes NSW can provide assurance that any work undertaken by Homes NSW under the Horizons approach including establishing a homelessness registry/By-Name list will include consultation with the SHS sector.