Jersey's Roseneath Centre for homeless to close
The centre can house up to 30 homeless or vulnerable adults who have family problems or addictions to alcohol or drugs.
Most of its funding comes from the States which says there is not enough money to keep it open.
Manager Janet Du Val told the BBC the residents were very upset when they were told.
Deputy Roy Le Herissier said: "Many factors have come together to force our closure, in particular the lack of funding."
He added: "The final closing date is yet to be confirmed but we are hoping to have several months' grace to relocate our residents properly and to ensure that our staff who are being made redundant have some time to seek employment elsewhere."