Murmurs: Lawsuit Says Shelter Nonprofit Spent Wildly

A whistleblower lawsuit alleges that Sunstone Way, a nonprofit receiving $13 million annually to operate homeless shelters in Multnomah and Clackamas counties including facilities in Northeast Portland, mismanaged public funds on upscale offices, staff retreats, and bloated contracts before firing its finance director who raised concerns. The Oregon Department of Justice ruled that the Oregon Community Foundation can keep Project Turnkey housing program applications secret despite the $125 million state-funded initiative’s use of public money, blocking transparency into how grantees like Rockwood CDC—which lost its Multnomah County contract over billing issues—qualified for funds. Governor Tina Kotek has reportedly soured on the Made in Old Town shoe manufacturing project after its executive director resigned, following the project’s failure to meet private fundraising requirements tied to its $7 million Prosper Portland loan.