The government has set aside $6 million statewide, aiming to provide additional resources to find temporary housing.
The government said funding would also go towards private rental brokerage for people at risk of becoming homeless.
State Member for Shepparton Suzanna Sheed said the statewide funding was welcomed but was concerned the not-for-profit charity sector was suffering staff losses.
“I am extremely concerned by the plight of the homeless during this crisis,” Ms Sheed said.
“The Shepparton district was particularly hard hit by homelessness before the coronavirus pandemic and I am seeing some very worrying trends emerging as the crisis unfolds.
“Shortages in crisis accommodation and emergency food services were apparent prior to the COVID-19 spread.
“Now volunteer staff, many of them elderly, are being sent home, services are being stretched to breaking point and donated food supplies are becoming erratic.
“We need a very deliberate government response to assist these incredibly vulnerable members of our community.”
Ms Sheed said she had particular concern for rough sleepers.
“These are the most vulnerable. They are generally in poor health,” she said.
“They have limited access to medical care and they cannot self-isolate. If COVID-19 gets into this population the results will be dire.”
Ms Sheed said community assistance, including donations to Shepparton Foodshare, was desperately needed.
She said after taking care of personal and family needs, people should turn their focus to helping vulnerable people, including the homeless.
Melbourne will receive the largest chunk of the government money at $3.8 million. Bendigo will receive $130 000, Ballarat $220 000 and Geelong $280 000.
The Shepparton electorate has the highest rate of homelessness in regional Victoria.
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