CLEARWATER, Fla. (WFLA) — The Grace House, an 80-bed shelter for homeless families, will transform into an affordable housing community in the fall.

Hope Villages Of America has operated the shelter for three decades, but families will have to move out in September. CEO Kirk Ray Smith said it’s necessary because the Juvenile Welfare Board of Pinellas County deciding to cut their $400,000 in taxpayer support.

“It’s very sad and it hurts to do that. This is an agonizing process, but what do you do? You can’t operate in the red,” Smith said.

8 On Your Side asked the Juvenile Welfare Board about the decision to stop funding Grace House. CEO Beth Houghton says the board was concerned with how the operation was being managed.

“We investigated and interviewed at least four individuals there at Grace House, both employees as well as folks who lived there, and the kinds of comments we got back were really disturbing,” she said.

Grace House stopped accepting new families in July. After the current occupants move out in September, they will conduct minor renovations ahead of launching the affordable housing units in October.