The government is giving £1 million to build new accommodation for homeless people in East Lindsey and Boston.
East Lindsey District Council will get £443,800 for six units of accommodation in the area.
Meanwhile, £739,297 will go towards ten units in Boston.
The units will be available from March 2021, and will prioritise rough sleepers and anyone at risk of homelessness.
It is hoped these new units will help offer a wider range of facilities for the growing number of people sleeping rough.
Cllr Wendy Bowkett, portfolio holder for communities at ELDC, said: “Nobody needs to sleep rough across Boston or East Lindsey.”
Cllr Martin Griggs at Boston Borough Council said: “Since the start of the pandemic the council and its partners have made massive efforts to shield some of our most vulnerable from coronavirus, with more than 20 placements into temporary accommodation and of these just over 50% into more sustainable accommodation.
“This funding will also allow us to build on that progress and keep more people off the streets while avoiding the use of temporary accommodation, which also can make social distancing extremely difficult for residents.”