Nonprofit Shelter Provider Accused of Imprudent Spending Will Close Up Shop

Sunstone Way, a nonprofit shelter provider operating six low-barrier shelters in the metro area with funding from Multnomah and Clackamas counties and the city of Portland, announced it will close July 1 due to reduced government funding and rising costs. The closure comes after former finance director Kate Fulton filed a whistleblower lawsuit last month alleging financial mismanagement, including overspending on office space and staff retreats, and follows a 2022 county audit that found the nonprofit had overbilled Multnomah County by $525,000. County and city officials say they are working with urgency to ensure continuity of services for shelter residents and assess impacts on the overall homeless services system.