Lutheran Social Services of North Dakota to close down Follow Us
Question of the Day By - Associated Press - Friday, January 15, 2021
FARGO, N.D. (AP) - Lutheran Social Services of North Dakota, a nonprofit agency that has provided various services since 1919, is closing its doors, citing financial struggles.
The agency said Friday the decision was motivated by the struggles of LSS Housing, an affordable housing program that the agency said drained its reserves and was projected to see further losses.
“This financial pressure has hampered the ability of an essential, faith-based organization to serve its clients, specifically those in primary mission areas such as services to children, families, seniors and others,” Bob Otterson, LSS‘ president and chief executive, said in a statement.
Lutheran Social Services of North Dakota has suspended programs and begun to lay off staff due to a financial crisis with its affordable housing program, the nonprofit announced on its website Friday.
A total of 283 full-time and part-time staff will be laid off, as well as several long-term contractors, the agency said. About 40 positions are based in Bismarck.
The decision was largely prompted by continued financial struggles of Lutheran Social Services Housing, an affiliated program that started in 2009, said Bob Otterson, who began Dec. 1 as the agencyâs president and CEO.
âLSS Housing in recent years has been draining the reserves of the affiliated agency,â Otterson said in a statement. âThis financial pressure has hampered the ability of an essential, faith-based organization to serve its clients, specifically those in primary mission areas such as services to children, families, seniors and others.â
An LSS blog post Friday, Jan. 15, states the decision was very much driven by the struggles of Lutheran Social Services Housing. LSS Housing, which started in 2009, drained reserves and projections indicated losses ahead.