The Shrine-House is a shrine located deep in the forest surrounding Evergreen Village. It was once dedicated to a Celebi, but over time, it's condition worsened more and more. Shay wandered up to it one day, and figured that it was an appropriate size so that she could live in it. After asking Ricky and Ronald, the shrine was then made into a small "club house". Shay now lives there, where she and Karo play together every month.
Pichu Pichu Shrine

Younger Karo and Shay playing around the Shrine-House.