But it has now been confirmed the refuge as the community has come to know it will close its doors from July 31.

The loss of funding, under the NSW Government's Going Home Staying Home reforms, has come as a surprise to staff.

And, has some concerned that more strain will be put on services.

Centacare, the welfare organisation of St Agnes Parish Port Macquarie, has run Christo Youth Service for the past 19 years.

But under the overhaul, the refuge will be transitioned to run under the umbrella of Kempsey-based youth service YP Space.

Centacare director Tony Davies, said the loss of funding was unexpected.

"Unfortunately the decision was made that we were not successful in our tender, which means the whole operation, under Centacare, will cease."

He said from August, clients will be transitioned to YP Space, as the successful tenderer for Youth Homelessness Support in Kempsey and Port Macquarie.

It follows a process which saw 336 individual services consolidated into 149 new service packages across NSW.

Youth Housing Support has confirmed its doors will also shut from the end of July.

At this stage the future of McCosker house remains uncertain.

"I think all of us were a little bit shocked," Mr Davies said. "Given the history."

"There's definitely going to be an increased strain on local services with the reduction in providers."

But Port Macquarie MP Leslie Williams has welcomed the reforms as a win for the most vulnerable in the community.

"For the first time, resources will be allocated based on evidence not history," Mrs Williams said. "The evidence is clear, the greatest need for homelessness services is in our suburbs and regions like the Port Macquarie electorate.

She said funding for the Mid-North Coast will increase by 37 per cent from $3.48 million in 2013 to $4.77 for 2014.

YP Space executive officer Nerida Ackerman said tender negotiations were still underway to determine the finer details.

She could not confirm whether Christo would keep its name.

"Right now we are more focused on making sure young people have the right support as we head towards the transition period."

Christo House Youth Service staffer John Talamaivao, said he would miss the young people he'd been fortunate enough to work with.

"At the end of the day, it's all about the kids," he said. "We just hope they are taken care of and that's the main thing we don't know what the model is going to be or how it's going to work."

Port Macquarie Hastings Domestic & Family Violence Specialist Services wasgiven a welcome boost in funding under the same reforms.

Were you involved as a volunteer with the original community-funded and run Christo Youth Service? The Port News would love to hear from you, email mel.pretorius@fairfaxmedia.com.au