Mr Baird and Ms Upton congratulated Wesley Mission and its nine local partners on their success in a $500,000 tender to help homeless families in the Liverpool and Fairfield areas.
Signing the contracts at the Wesley Noreen Towers community at Ashcroft, Mr Baird said the Going Home, Staying Home initiatives were the most significant reforms of homeless services in a generation.
"It delivers more money and better services to tackle homelessness," Mr Baird said.
"Vital crisis accommodation will be complemented by early intervention services aiming to stop people becoming homeless in the first place.
"Here in South West Sydney, Wesley Mission will be working with its local partners to make a difference for young families at risk of homelessness."
The NSW Minister for Family and Community Services Gabrielle Upton said Wesley Mission provided both crisis and early intervention and prevention services.
"On the eve of Homeless Persons' Week, it is timely to reflect on the reality that homelessness is a complex problem," Ms Upton said.
"Many people require more than one type of assistance to help them get their lives back on track."
Wesley Mission will continue to support inner-city homeless people, and the initiatives will support the expansion of services to families and young people, as well as women and children escaping domestic violence through centres like Wesley Noreen Towers, which has assisted 74 parents and 193 children during the past two years.
"The Going Home, Staying Home reforms have not only maintained services for crisis accommodation but addressed the need for prevention," the CEO of Wesley Mission the Rev Dr Keith Garner said.
"The new reforms will mean a more integrated approach across communities and opportunities to break the cycle of inter-generational homelessness."
Dr Garner said he was also pleased to see more funding directed to suburban and regional areas.
"For more than a decade, Wesley Mission has been witnessing a drift of homeless people from these areas to the inner-city and has long advocated for a more considered approach to this trend," Dr Garner said.
"We are now moving from piecemeal approaches to a more strategic model of service delivery with wrap around specialist support services to help people at every step of the way. We look forward to working with our partners in providing lasting solutions for the homeless."