The decision to close the Rhode Island Family Shelter after 25 years of helping families get back on their feet didn’t come easily, but running in the red and the risk of not meeting payroll or paying vendors and taxes was not an option.

First and foremost was the relocation of seven families living at the shelter, the former St. Benedict convent on Beach Avenue in Conimicut. That was accomplished before the July 4th weekend. The non-profit agency officially announced the closure last week.

The closure leaves a dent in available shelters for families, says James Ryczek, director of the Rhode Island Coalition for the Homeless. Housing for nine families may not seem like much, but with families ranging from two to seven members, it means shelter for 18 to as many as 63 people who would otherwise be on the street.

Ryczek estimates the six shelters capable of accommodating families serve 190 to 225 people statewide. He said another 800 to 1,000 people are accommodated in individual shelters statewide.

But what forced the Rhode Island Family Shelter to close its doors is not unique to this shelter and is affecting the operations of other shelters, according to Ryczek. He said some agencies have had to wait up to a year to be reimbursed by the Department of Housing and Urban Development (HUD), although that has improved somewhat recently.

Ryczek said as a result of what happened at the Urban League of Rhode Island, which was unable to account for federal grants and meet payroll and utility costs more than a year ago, the state has been introduced as a third party receiver before funds are distributed. As it was, agencies had to close out the books on one month before applying for reimbursement. With the third party review, cash flow was seriously impaired.

“They can’t absorb delayed payments,” Karen Jefferys of the coalition said of the state’s smaller agencies.

HUD funding is critical to the shelter’s supportive housing program, which operates seven apartments on the second floor of the shelter. That program is unaffected by the shelter closure, but delays in reimbursement put the agency in a pinch overall.

Patti Macreading, shelter director, said delays in reimbursement are a part of the problem. The bottom line, however, is that the shelter was not taking in enough in state funding, contributive support, donations and fundraisers to meet payroll and other expenses.

The shelter board didn’t wait for the agency to default; it chose to close the doors and reevaluate its position.

The action came as a surprise to many, including Mayor Scott Avedisian. The mayor met last week with the Warwick 13, a coalition of 13 non-profits that explored possible means of funding as well as mergers and affiliations that might allow the shelter to reopen. Macreading said her board would look at those options. The emphasis up until now has been on placing families that were in the shelter and informing those accustomed of referring families to the shelter that they are no longer operational.

Briefed on the situation, Avedisian said: “The decision was they can’t afford it. It was a hard decision to make.”

As of Friday, Macreading was the last of the 11-member shelter staff. She said she is on part time. She said she is wearing many hats and is managing the supportive housing program.

“This is not an issue of mismanagement. We rely on donors and the government,” she said.

“It was a combination of the need and the expenses being so much greater than the revenues,” she said.

She said the shelter has been able to meet all payroll and tax expenses, and that vendors have or will be paid.

“The community has been great,” she said, “but everyone is feeling helpless. We can’t accept donations at this point.”

She said offers to help would have been “a Band Aid at this point until a more continuous stream is coming in.”

More meetings are planned to discuss options and develop a strategy, Macreading said. According to a release issued July 9, “Our Board of Directors is examining all possible options for re-establishing services for the emergency family shelter program. We are working with the state Office of Housing and Community Development, Rhode Island Housing, The City of Warwick and Mayor Avedisian, the Rhode Island Coalition for the Homeless and other social service agencies in the area to proactively examine all possible options to ensure families experiencing homelessness in our state are adequately served.”