Programs that provide extended shelter and supportive services primarily for homeless individuals and/or families with the goal of helping them live independently and transition into permanent housing. Some programs require that the individual/family be transitioning from a short-term emergency shelter. The length of stay varies considerably by program. It is generally longer than two weeks but typically 60 days or more and, in many cases, up to two years or more. The supportive services may be provided directly by the organization managing the housing or may be coordinated by them and provided by other public or private agencies. Transitional housing/shelter is generally provided in apartment style facilities with a higher degree of privacy than short-term homeless shelters; may be provided at no cost to the resident; and may be configured for specialized groups within the homeless population such as people with substance use disorders, homeless mentally ill, homeless domestic violence victims, veterans or homeless people with AIDS/HIV. In some cases, a "transition in place" option allows families to continue living in the same complex (if not the same unit) where their transitional housing unit is located when they are ready to move to permanent housing. In other cases, the permanent housing option is either public housing or private rental housing supported by a tenant-based voucher subsidy. Included are post-domestic violence shelter housing programs that make affordable rental housing (or other accommodations) available to women, generally those who are coming directly out of a domestic violence shelter or other crisis shelter, often in apartment complexes owned by the shelter; and programs that provide transitional housing and support services for other targeted groups such as military and veteran families and others who need a temporary supportive living environment to maintain stability and begin to thrive.

Individuals and families who have no fixed, regular and adequate residence, who are residing temporarily with relatives or friends or who live on the street, in emergency or transitional shelters, in a hotel or motel paid for with a shelter voucher, in seriously substandard housing or in an abandoned building, place of business, car or other vehicle, or other public or private place that is not ordinarily used as a regular sleeping accommodation for people. Some people who are homeless have issues with substance abuse, chronic or severe mental illness, chronic unemployment or underemployment, or other problems that prevent them from obtaining housing.