Former clients of Wollongong Emergency Family Housing have branded a decision to close the service "disgusting".
The 29-year-old organisation is one of three in the Illawarra/Shoalhaven to miss out on funding under the state government's new system for financing homelessness services.
Wollongong's Dennis Fielding said he had found the service "brilliant". He said a staffer at the Kenny Street offices, Agnes, found him and wife Kaye a temporary home.
"Later, when Agnes found out my wife was in hospital having a bypass, she rang up every second or third day to see how she was," Mr Fielding said.
Dennis and Lynnette Lantry, of Barrack Point, also sang the service's praises.
The pair approached the Housing Commission and the Salvation Army when they lost their business and, with their three children, became homeless.
Mrs Lantry said the service arranged temporary accommodation and then - mindful it was her son's HSC year - a more lasting solution while they got back on their feet.