The initial funding was provided to ensure the homeless population in Launceston, Burnie, and Hobart had a better chance of escaping the state's often brutally cold winter nights, resulting in the addition of eleven beds at the not-for-profit's Frederick Street site.

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Launceston City Mission's chief executive Stephen Brown said the demand for nightly accommodation was "very high' during the colder months of this year, occasionally meaning some people had to be turned away.

"We try our best to make other arrangements for them when that happens," he said.

"I'd put the high occupancy down to the increased rainfall we experienced, it was really a very wet winter."

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Mr Brown said the additional government funding would allow the program to continue operating with the extra eleven beds - initially only funded for three months - all the way through until June 30, of next year.

"The coming months aren't as cold, but they're equally as busy," he said.

"People come and go a lot more freely this time of year, and that's good because it frees up spots for others, and means were doing our job by introducing people to more reliable accommodation alternatives like the nearby Housing Tasmania group."

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Mr Brown said he was "very grateful" for the funding as it provided certainty to the continuation of operations for those in need of the program, and also helped shore up staffing contracts.

Minister Guy Barnett said he allocated the funding after requesting the department to undertake an analysis of the demand for Safe Spaces' services over the past year in each of its three locations. The findings identified an "ongoing demand", particularly in Launceston where capacity was "frequently reached".

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