Bellingham’s Sun House to Shutter Shelter Services Amid Funding Loss

Sun House, a nonprofit shelter in Bellingham serving individuals with mental health diagnoses and homelessness, will cease its 24/7 staffed shelter model due to a 50% budget cut from Whatcom County. The nonprofit, which has operated since 1983, will end its shelter services by September 30, according to an email from Executive Director Hannah Osborne to partners, obtained by The Bellingham Herald.

The funding reduction is part of a broader challenge facing local homelessness programs. Whatcom County Health and Community Services (WCHCS) Communications Specialist Marie Junek confirmed the budget cut, attributing it to a “perfect storm” of declining key funding sources and rising costs. Local organizations requested $27 million in grant funding for 2027, but the county’s available budget is only about $15 million.

WCHCS Director Champ Thomaskutty emphasized the agency’s commitment to maintaining services for the most vulnerable. “All our programs are facing a tough fiscal year ahead in 2027, and our goal is to maintain services for the most vulnerable in our community,” he said.

Sun House will receive $325,000 in 2027 — half of what it received in 2026 — while the county encourages the nonprofit to transition to a “lower-cost model.” Junek explained that funding decisions were made using a scoring matrix to prioritize long-term programs and prevent evictions for enrolled clients.

Sun House is no longer accepting new referrals or intakes for its current program but will remain in its current location. The nonprofit plans to continue offering services in some capacity, though the specifics are yet to be determined. In the email, Osborne urged community partners to offer grace, patience, and compassion during this transition.

The closure highlights the ongoing struggle to provide stable housing and support for those experiencing homelessness. As Proverbs 31:8-9 reminds us, we are called to speak up for the oppressed and defend the rights of the poor. In times of fiscal strain, the church and nonprofit communities are called to reflect this care and seek creative ways to support vulnerable neighbors.

Source: Read the original report