THE Yacaaba Centre's future has been cast in doubt after the state government's announcement last week that more than $850,000 the centre was relying on receiving had been granted to the Raymond Terrace Neighbourhood Centre.
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Yacaaba Centre management committee chairwoman Sue Platcher said the announcement was "a shock" and that the centre was at risk of closing after losing its funding to provide specialist homelessness services (SHS).
"We are in the process of determining whether anything can be done to prevent this [possible closure]," Ms Platcher said.
"We have every intention to fight for the survival of Yacaaba, to stay in this community."
The Yacaaba Centre has been the only provider of accommodation services on the Tomaree Peninsula for 25 years.
In 2013, 350 clients accessed its counselling and homelessness services, Ms Platcher said.
In November the management committee tendered for funding to continue providing SHS under the state-government's reform package Going Home, Staying Home.
On Friday, June 13, the committee were told they were not successful in their tender.
The Raymond Terrace Neighbourhood Centre, in partnership with the Port Stephens Family Support Service, won the tender to provide the Port Stephens Homelessness Support Service, worth $885,000.
The new service is aimed at providing "holistic homelessness accommodation and support services" to young people, men, single women, and families across Port Stephens, including those escaping domestic violence.
"Under these reforms, local homelessness services will be better placed to deliver a full range of supports that will help us to tackle homelessness at a local level," Port Stephens MP Craig Baumann said.
"Greater focus will be placed on early intervention and prevention, not just crisis management."
Kate Washington, the Labor candidate for Port Stephens, said the decision to not fund the Yacaaba Centre was "appallingly callous".
"It is an appallingly callous decision by the state government to cut such a service in our area," Ms Washington said.
"The nature of the service, it requires proximity.
"It is not a service which can be centralised," she said.
Ms Washington said she would try to rally support for the Yacaaba Centre within the community so it could continue to provide its services.
Raymond Terrace Neighbourhood Centre executive officer, Colleen Whittle, said the expansion of services was "terrific" and that all the Port would be serviced, not just selected suburbs.