The City of London has rejected a funding proposal from My Sister’s Place, taking away the only stable source of revenue of the non-profit agency.

My Sister’s Place, which helps abused and homeless women, found out late last week that its funding request was rejected.

The centre has a budget of about $500,000, made up primarily through fundraising efforts.

But the city says they will no longer fund My Sister’s Place as part of its Housing First-Homelessness Prevention Strategy, with funds provided by the federal government.

That slashed the agency’s funding by 20 per cent.

My Sister’s Place opened more than 10 years ago. It’s a daytime centre aimed at helping victims of abuse overcome their challenges and stabilize their lives.

They've helped hundreds of homeless women gain the skills needed to find a home and helped prevent homelessness for many others who were at risk.

Nearly three-quarters of its funding comes through donations, but with more than 100 women coming through its doors every day, it relies on government support to keep programs running.

Canadian Mental Health Association Middlesex CEO Don Seymour says it will appeal the city's decision. My Sister’s Place is one of CHMA’s programs.

“We will keep the doors open. We have no choice. The women are depending on us to provide some pretty essential services” he says.

“Since 2010, our funding from the City of London has gone down by about 50 per cent.”