An outreach service led by the Dunedin City Council could be funded initially by allowing a $270,000 overspend.
Alternatively, the council could defer establishing the service until considering it in the next annual plan budgeting process, or stick with the status quo.
Consideration of the issue comes within a month of Catholic Social Services employing a housing navigator to work with rough sleepers and the wider homeless community in Dunedin, funded by the Ministry of Social Development.
The programme started this month and funding has been secured until June next year. If the council decides to expand its own housing policy and plan area, staffing would increase from one to three.
In September, the council agreed in principle to the establishment of such a service.
It signalled at the time more information would be coming this month.
In a report for a meeting on Thursday, the council said an estimated 267 people in Otago experienced severe housing deprivation last year.
‘‘These individuals are living without shelter, sleeping rough in cars, tents or makeshift structures.
‘‘This number reflects a growing crisis that is increasingly visible . . . and which current services are not adequately resourced to address.’’
Council staff also said there was a critical gap in supported accommodation for young people.
Catholic Social Services general manager Melanie McNatty indicated support for further council involvement.
‘‘Anything we can do as a city to strengthen working together and addressing homelessness is helpful,’’ she said.
Ministry of Social Development southern commissioner Steph Voight said the ministry hoped the partnership would act as a circuit breaker.
‘‘When people sleep rough, they live hard lives,’’ she said.
‘‘There are usually complex and difficult experiences which get someone to that place and those same experiences can make them wary of engaging with government agencies.’’
The agency had solid connections with homeless people and the city’s institutions, she said.
‘‘Our goal is to reach people who are harder to reach and connect them with suitable housing options, healthcare and social support services.’’
