The bid - four years in the making - has been given the green light and will see service providers tasked with supporting rough sleepers to achieve a multitude of specfic outcomes.
These outcomes include enabling each rough sleeper to become drug and alcohol free, helping them to sustain their own accomodation and address physical and mental health needs.
The initiative also aims to support rough sleepers by helping them to access education, training and employment.
A group of councils and agencies, including West Lindsey District Council, have worked together for the Social Impact Bond funding (SIB) totalling £1.3 million.
Michelle Howard, Chair of the Lincolnshire Homelessness Strategy, said: ‘We are delighted that our bid for funding has been successful and we can now work on helping some of the most at-risk rough sleepers in the county.”