Housing Matters has been struggling financially for months. (Nik Altenberg — Santa Cruz Local)

SANTA CRUZ >> Santa Cruz is expected to lose 20 shelter beds next month, as ongoing budget struggles prompt nonprofit Housing Matters to scale back two emergency housing programs.

This June, the Rebele Family Shelter will offer 18 rooms, down from 28, according to a Friday statement from Housing Matters CEO Phil Kramer. The Recuperative Care Facility, which houses people recovering from serious medical issues, will have 20 beds, down from 30. 

Both programs will be consolidated into a single building, potentially saving more than $1 million a year, Kramer wrote. Federal and state grants limit the funding allowed for administration and operation of shelters, rather than direct services. As costs have outpaced income, private donations have been unable to fill the gap.

“Rather than risk the closure of either program, we are reducing the capacity of both to preserve services into the future,” Kramer wrote.

The change comes as homeless people in Santa Cruz are rapidly losing resources. Housing Matters shuttered its day services in April, and the nonprofit Mental Health Client Action Network’s clubhouse has been shuttered since August. City staff have explored the idea of closing a 24-hour safe parking program.

As the state and federal government offers less money for homelessness response, other federal cuts could push more people into homelessness.

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