The Welsh government is particularly concerned about the use of bed and breakfast accommodation. In March, it drew up proposals to restrict the use of B&Bs to house homeless people, and work is under way to produce detailed guidance on this.
Most of the 19 authorities that have been given awards will use the money to employ people to work with the homeless. Several will employ mediation workers to try to resolve domestic problems that threaten to make 16- and 17-year-olds homeless.
JJ Costello, head of housing services (south) at Shelter Cymru, said: "We consider mediation to be one of the valuable approaches to homelessness."
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