At least 3 area housing programs lose county funding in ‘perfect storm’

Sun House, a nine-bedroom shelter in Bellingham serving homeless individuals with mental health diagnoses, is facing a 50% reduction in county funding next year. This change will mark the first visible impact of broader cuts to homeless services in Whatcom County. For nearly 15 years, the shelter has provided homecooked meals and 24/7 support to residents, primarily funded by the county. With the new funding level, the shelter will no longer operate as an emergency shelter, according to Executive Director Hannah Osborne.

Osborne described the changes as “devastating” for residents, employees, and the community. The shelter is now exploring a transitional housing model, which would require a shift in the population it serves. This model would not include 24/7 staffing, meaning residents would need to manage daily tasks independently. Osborne expressed hope that Sun House could one day resume offering comprehensive shelter services, as outlined in a recent letter to community partners.

Whatcom County’s housing program is experiencing a 20% decline in funding from last year, driven by economic pressures. Marie Junek, spokesperson for Whatcom County Health and Community Services, noted the county is facing a “perfect storm” of reduced funding from multiple sources and rising costs. Much of the county’s housing funds come from a consolidated homeless grant from the Washington state Department of Commerce, which is expected to remain steady. However, other funding streams have become less stable.

Revenue from document recording fees, which are collected on real estate transactions and designated for housing programs in Washington, has declined as mortgage rates remain high. Chris D’Onofrio, the county’s housing program supervisor, said this source of funding has decreased “substantially” in recent years. Sales tax revenues are also down, and there are competing priorities for that funding, including supporting affordable housing projects.

Additionally, a grant that covered some administrative functions in Whatcom County has ended, adding to internal costs. Pandemic-era funding has also dried up, further straining the housing program. This year, providers requested $27 million in funds for 2027, but the housing program’s budget for 2027 is only $1 million. The funding shortfall highlights the growing challenges faced by local organizations and the need for sustainable solutions to address housing insecurity.

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