Cedar Tree Lodge service manager Jamie Tremaine is eight years into a 10-year lease for the former, 2000sq m Balclutha Hospital complex.
However, as his renewal approaches, he said renovation and compliance costs might force him to shut the facility down, unless community support could be found to convert the lease to freehold.
"The hospital has a special, spiritual place in many local people’s hearts, and I believe what we’re doing here is providing a vital service both for our residents, who come to Clutha seeking work, and for the wider community.
"I drew a salary of $30,000 last year, so I’m not in this for the money.
"I don’t think people realise that we’ve had more than 1000 homeless people through our doors since we opened eight years ago, a large majority of whom are now in their own homes, in work, and contributing to the local economy.
"I truly believe we’re a hidden, essential service to the community."
Mr Tremaine estimated he had spent more than $500,000 on renovations and compliance costs during his tenure.
At present, he was completing the installation of 315 bales of insulation, at a cost of $43,000.
"We put heat pumps in last year and, with the insulation, that’s making a huge difference to the quality of residents’ lives here.
"I can see retrofitted double-glazing coming down the track, which again will be great for us, but come at a huge capital cost. Then the roof needs replacing.
"Even though I’m just the leaseholder, it’s all come out of my pocket; but I’ll continue to make that commitment if we can get the community behind us and secure the freehold."
He said the term "homeless" covered a wide spectrum of people and backgrounds.
"We get everyone from blue-collar workers who just want to see if they like the job and area before they commit to a property; to referrals from all the main agencies covering people experiencing temporary or longer-term life issues.
"We give everyone a bed and a roof over their head, and try and help out with things like our foodbank, finding work and transport to get there, and so on. It’s a proper community."
Mr Tremaine said, on average, the lodge hosted about 50 residents at any given time; an average stay was between one and four months, although some residents remained for several years.
"Part of the problem is it takes six to twelve months to find a house down here, so sometimes temporary boarding accommodation is your only choice.
"If we were forced to shut down, where would everybody go?"
Mr Tremaine has set up a Givealittle page to raise the necessary funds.