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from https://nwlaborpress.org/2026/04/scandal-plagued-homeless-service-nonprofit-will-close/

Scandal-plagued homeless service nonprofit will close
Apr 3, 2026
By
Don McIntosh

Sunstone Way workers rallied Feb. 24 to call for the dismissal of the nonprofit's top executives. | Photo by David Kreisman courtesy Oregon AFSCME Share

Two weeks after union members called for top bosses to resign at
Sunstone Way, workers at the nonprofit homeless camp operator got an
email saying Sunstone will permanently close on July 1.

The March 12 memo to workers blamed the closure on reduced funding and increased expenses, but gross mismanagement revealed in a Feb. 12 whistleblower lawsuit likely played a role. In the lawsuit, a fired
financial director accused three Sunstone execs of misspending hundreds
of thousands of dollars that the organization received from Multnomah
County and the City of Portland to shelter and feed the homeless.

rCLThe general sentiment among workers that IrCOve heard from is that this (closure) was a move to skirt accountability,rCY said Sunstone case
manager Joy Nicholson, a union steward and board member at AFSCME Local
1790.

Nicholson worries that Sunstone wonrCOt even make it to July; it has had trouble making payroll in the past.

Sunstone manages two motel shelters for Multnomah County, two rCLsafe
restrCY villages and an overnight shelter under contract with the City of Portland, and a tiny home village for Clackamas County.

Nicholson expects the city and counties will hand over management of the
camps to another non-profit operator, but whether the new operators will
hire the old employees or recognize their union is still to be determined.

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Issue
April 3, 2026
TopicsAFSCME Local 1790Sunstone Way
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