Despite losing 80 percent of its funding, Project Homestart, which provides temporary housing for homeless families in Chapel Hill, will remain open until June 30.
The project lost $366,156 when the U.S. Department of Housing and Urban Development decided to reallocate funds to other programs that provide for permanent affordable housing.
"For this grant to go away is really going to make it difficult for the homeless community," said Chris Moran, executive director of the Inter-Faith Council.
Project Homestart is one of many programs controlled by IFC, which includes a crisis intervention center, a soup kitchen and an overnight shelter. IFC officials said this week that they will continue to provide services for the project even though the funding from HUD will end March 31.
IFC has an under-expenditure of $40,000 to $50,000, but it will take $90,000 to fund the project until June.
Moran said IFC will cover the extra cost by "being frugal" and through community help during its spring fund-raising campaign.
"We're not going to sacrifice any of our services," said Moran. "We're hopeful revenues come in at the end of the year."
IFC is lobbying local U.S. congressional representatives to try to get the funding back, but Moran admitted that it would be difficult to restore the funding.
"This administration is not interested in continuing services as they once were," Moran said.