Last year, the Oamaru Hospice Shop was moved out of its dedicated Thames Highway building into 153 Thames St, but it left behind space used for its patient and education services, which were moved.
The building was damp, damaged and mouldy and left the hospice split up.
Now the green light has been given to remediate the space and it would hopefully be back before Christmas, Otago Community Hospice chief executive Ginny Green said.
The problem was a lack of airflow and at first it looked as if the building would need to be raised to increase ventilation.
There was concern it would cost more to fix than it the building would be worth, she said.
It has been assessed and the job was not as large as once thought. It is expected to cost $300,000-$400,000.
There were two particularly mouldy spots which would need work and flooring and walls would need to be replaced.
"We’re really keen to get people back."
The building first opened in 2019 using money from fundraising grants and a "very generous" bequest, Ms Green said.