Wollongong Homeless Hub manager Julie Mitchell said the Department of Family and Community services had guaranteed funding up to June 2017.

"It was such a relief, it was like we won the lottery, not just for stuff but all the homeless in the Illawarra," she said.

"It came out of nowhere; we have all become really attached to the clients, they thank us everyday for the services we provide."

The Homeless Hub was running on an 18-month interim grant. Now it will receive $280,000 a year towards its programs which provide daily essentials such as shower and laundry facilities, emergency accommodation placement and free breakfasts to the homeless.

"We're getting nearly a 50 per cent increase in people using the service: we get 47-49 people coming in every day," Ms Mitchell said

"There are more people sleeping rough then ever, we have three people right now looking for short-term accommodation, we've been ringing around endlessly but found nothing, so we've got three people without a bed tonight," she said.

The Homeless Hub also offers free haircuts and hygiene facilities, basic necessities denied to those without secure shelter.

"Little things like having clean clothes, a place for men to shave keeps people looking well presented which mean's they can go out and be successful applying for private accommodation," Ms Mitchell said

"Now with the funding we can start planning long term and introduce new programs."