Tenderloin Health, located at 255 Golden Gate Ave., announced Thursday that its board of directors voted to discontinue operation of the agency.
The nonprofit provided counseling, case management and housing for hundreds of HIV or AIDS-affected residents in the Tenderloin and surrounding areas.
Agency officials said the recent loss of $500,000 in federal funding caused them to make the decision to close.
Tenderloin Health CEO David Hernandez said in a statement that service to the agency's clients would not be interrupted during a transition period to new providers, who are expected to be announced by the end of this month.
San Francisco's Department of Public Health and Human Services Agency will be working with Tenderloin Health on the transition plan, which will include opportunities for employment for current staff at the nonprofit, according to agency officials.
San Francisco Director of Health Barbara Garcia thanked Tenderloin Health for its service to the community and said the city had been moving toward financial stability in recent years but said in a statement that the loss of federal funding "undermined all the progress they made."