City Shelter Beds Will Shutter Due to Impending Closure of Sunstone Way

Up to 134 shelter beds funded by the city of Portland will close or relocate following the shutdown of nonprofit contractor Sunstone Way, which has faced allegations of fiscal mismanagement including a whistleblower lawsuit and a 2022 Multnomah County audit finding it overbilled by $525,000. Mayor Keith Wilson’s administration will close a 38-pod shelter in the Lloyd District and decommission 96 beds at a Centennial neighborhood shelter (opened as part of Wilson’s pledge to add 1,500 shelter beds), while transferring management of a 55-pod Naito Parkway shelter to Transition Projects. The closures represent a significant setback to the city’s shelter capacity amid ongoing homelessness challenges and concerns about contractor accountability.