The state government will contribute $150,000 to the Safe Night Spaces pilot which seeks to meet the needs of people sleeping rough who for various reasons cannot make use of shelters and other supports.
Housing Minister Roger Jaensch said the government welcomed opportunities to back local leadership on local solutions to meet specific needs not being addressed by existing programs.
"Safe Night Spaces is designed and led by people with direct, practical experience of the complex needs and circumstances of such people," Mr Jaensch said.
The Hobart-based pilot will be led by Hobart City Mission and the Salvation Army, in partnership with the Hobart City Council and the state government.
"Lessons learnt from the pilot project will also inform future homelessness programs and services funded from the government," Mr Jaensch said.
"We are very excited to see what this can achieve for the people who are right now missing out on the services they need to end homelessness."
A fundraising campaign for a pilot Safe Night Spaces has also raised $175,000 to allow the program to commence operations as soon as possible.