Dallas housing nonprofit CitySquare to close this year

• CitySquare also played a key role in shutting down one of the city's biggest homeless encampments and finding shelter for the residents there.

Driving the news: The nonprofit's new CEO, Annam Manthiram, announced the impending closure in an email Sunday night, saying she had discovered a "much larger funding deficit than even the board knew about" when she joined the organization in August.

• CitySquare will merge its programs with other nonprofits already operating in Dallas.

The big picture: The nonprofit serves more than 12,000 people a year at its food pantry and coordinates housing for about 1,000 people. Plus, its social workers connect more than 2,000 people to health insurance.

• CitySquare moved to its sprawling 52,000-square-foot center in 2015 with plans to expand its services.

Friction point: The organization may have tried to do too much, including continuing to fund housing programs beyond its budget after pandemic-relief funds dried up, per the Dallas Morning News.

• The nonprofit's longtime leader, Larry James, stepped down at the end of 2021 and many other top leaders and fundraisers moved on shortly after.

State of play: Manthiram said she thought when she took the job in August she "had at least three years to get the ship righted."

• The organization, which receives about half of its funding from federal grants, has a $3.2 million deficit.