NSW Government to deliver 200 new crisis beds to replace motel rooms for people in need
Media Release /Wednesday, 27th May 2026
The Minns Labor Government is making real progress in the expansion of permanent crisis accommodation through the Building Crisis Housing Plan, which is increasing capacity by more than 20 per cent over three years.
The Building Crisis Housing Plan is one part of the NSW Government’s strategy to make homelessness rare, brief, and not repeated, all backed by a record $688 million investment.
The former Coalition Government relied heavily on expensive motels and hotels as temporary crisis accommodation, which are costly, unreliable, and do not have the necessary wraparound supports to help get people back on their feet.
The Minns Government is moving away from this model, investing $130 million to deliver at least 200 additional, permanent crisis beds in collaboration with critical support services.
The funding is being delivered in three streams to boost bed supply as quickly as possible:
- Homes NSW Refurbishment – Direct investment into revitalising and refurbishing existing government housing stock.
- Competitive sector tender – A open tender inviting applications from the sector to increase crisis housing.
- Fast-tracking projects – Leveraging an existing pipeline of projects that have yet to receive funding.
The NSW Government has idenitified multiple projects that will help get more beds into the system quickly, like the creation of a trauma-informed transitional accomodation in the Inner West for single women, in partnership with the Women’s Housing Company.
From 11 June, the NSW Government will be calling for tenders from our trusted sector partners for proposals that deliver crisis accommodation on land owned by the sector, with up to $5 million funding available per proposed project.
Across all streams there will be targeted support for communities most affected by homelessness, including women and children escaping domestic and family violence, young people and Aboriginal communities.
The Building Crisis Housing Plan builds on the momentum of the $100 million Homelessness Innovation Fund, which is already delivering more than 900 new beds for people experiencing homelessness or sudden housing instability.
Minister for Housing and Homelessness Rose Jackson said:
“It may surprise people to know that prior to 2025, there has never been a whole-of-government approach to ending homelessness. The former Liberal-National government did not have a comprehensive plan to protect our most vulnerable people.
“Their legacy is a decade of chronic underfunding for vital services and the sell off of 7,600 homes and assests, likely plunging thousands of people into homelessness for the first time.
“Unlike them, we do have a plan – the NSW Homelessness Strategy 2025-2035 – and it is a plan backed by a record-breaking investment in homelessness services and billions of dollars to build new public homes.
“The Building Crisis Housing Plan is the next step in practical, on-the-ground support to dramtically increase capacity within the homelessness sector with permanent, supported crisis accomodation.
“We know the best solutions are shaped by the experts, which is why we want to work directly with these organisations and services to deliver coordinated support and better pathways into long-term housing.”
Minister for the Prevention of Domestic and Family Violence Jodie Harrison said:
“One of the biggest barriers stopping women from leaving abuse is the lack of safe places to go to.
“The $130 million under the Building Crisis Housing Plan is an important investment by the Minns Government to build a safer New South Wales for women and children escaping domestic and family violence.
“The roll out of this next phase means women escaping violence will have access to more safe accommodation so they can recover and heal.”
Women’s Housing Company CEO Nada Nasser said:
“The Women’s Housing Company welcomes more investment through the Building Crisis Housing Plan.
“Women escaping domestic and family violence or other crisis need a safe place to recover and create a pathway out of homelessness.
“We’re thrilled our project has been selected for fast-tracking, so we can deliver not just a safe place but trauma-informed supports as part of a holistic approach to transition up to 10 extra women per year out of crisis and into stable long-term accommodation.”
