Council to Homeless Persons said the Victorian Government had announced new funding for the From Homelessness to a Home (H2H) program would support existing clients to stay in housing.

Many clients and workers had expressed feelings of fear, anxiety and concern about what would happen to them and where they would live once the program ended, after funding cuts in the May Victorian budget.

"We are excited and terribly relieved for our consumers who can continue to stay in their properties until they can get a long term housing option," Uniting Ballarat senior manager homelessness Adam Liversage said.

The Victorian Government reduced funding for H2H by $43 million annually in the May budget, 78 per cent of the program's previous funding.

While the funding cuts mean no new people will be accepted into the program, the new funding will extend head leases for existing clients until all can transition to long-term housing options.

Funding will also ensure the continuation of support to clients as their needs change over time and to help ensure they maintain their tenancy.

"H2H has made a big difference to people's lives," Mr Liversage said.

"There are kids who have re-engaged back into education, consumers who have found employment and gone into higher education.

"They have been able to deal with alcohol and drug issues and finally able to address mental health issues as well. We have seen a massive success for majority of consumers in the program.

"It really proves the point when you do offer safe, permanent and secure housing, people in crisis are able to deal with their other needs. This is why we need programs such as H2H to continue and run it again for thousands of others who are homeless because it is working."

Seventy four people in the Wimmera, Central Highlands and South West were placed in long-term housing and provided with ongoing support as part H2H.

To be eligible for the H2H program, people must have been placed into crisis accommodation in hotels and motels from March to December 2020 and have a history of rough sleeping or chronic homelessness.

The aim was to find a permanent home for people placed in hotels and motels throughout the coronavirus pandemic and provide ongoing support, inspired by housing first principles.

The staff team worked to prioritise 74 people or households in the Central Highlands, Wimmera and South West out of more than 700 who would have been eligible.

The state government supplied 15 existing social housing properties and purchased 18 homes from the private market for the program.

Uniting supplied 35 homes, some which were existing properties and others through new head leasing arrangements. Head leasing means the organisation signs the lease with the real estate agent and the client signs the lease through Uniting.

The tenant pays 25 per cent of their income and the program makes up the difference. Council to Homeless Persons chief executive Jenny Smith said she would continue advocate for H2H and housing and supports for people experiencing homelessness.

"Council to Homeless Persons congratulates the government on continuing to fund the (H2H) program for existing participants," she said in a statement.

"Too often we see people with complex needs secure accommodation, but then slip through the cracks because they don't have wraparound support to keep the rest of their lives on track.

"However, we know when support is provided, people don't end up returning to rough sleeping, and more acute government interventions like hospitals or acute mental health care, are avoided.

"We must commit to expanding the H2H program in future budgets, so more people can benefit, and will be able to make a significant dent in breaking the cycle of homelessness for people with complex needs.

"We know this housing first model works, but it does take time and ongoing commitment to deliver on its full potential for all of Victoria's 9000 rough sleepers."