The money is part of £150m being spent across the country
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Homeless organisations and groups across Devon and Cornwall are to share £2.5m of government money to help alleviate the problem.
The money is to try to help rough sleepers make a permanent move away from the streets.
About £1.3m will be targeted at improving the condition of accommodation at hostels and the services they provide.
More than £300,000 is to be spent in Cornwall alone.
District benefits
In Plymouth, more than £1.2m will be available for improvements at five schemes including a rebuild of the Shekinah Mission Day Centre.
In Exeter, the Shilhay men's hostel, Gabriel House, will get £650,000 to create secure accommodation for clients.
In Cornwall, all six district councils will benefit from the money.
The Devon and Cornwall money is part of an extra £150m being released to help an estimated 500,000 homeless people around the country.