STAFF and residents at Southampton's Salvation Army hostel fear they will be out of homes and jobs when the centre is refurbished.
The centre was given a £4m cash boost by the government for much-needed work on the Mountbatten Centre in Oxford Street.
Currently there are 62 beds in the hostel and once refurbished the building will provide self-contained live-in facilities.
Building work on the centre is anticipated to begin next January and the centre will have to close and be rebuilt.
A letter sent out to current and prospective residents from manager Major Victor Kidd says the centre will have to stop taking in new residents and eventually empty the hostel completely.
Residents are being asked to sign 28-day licences on the provision that they leave the premises once their time is up.
The letter reads: "As much help as we can give will be given to resettle but this does not come with a guarantee of housing."
Apart from one-night emergency beds any visitors from outside Hampshire will not be given accommodation.
One resident, who asked not to be named, said residents feared they would be out on the streets.
"Some of the residents there have been given licence agreements for five months - they are now being asked to sign agreements for 28 days," he said. "Some of the people there are really messed up with drink and drugs and they know the place is closing and they will have nowhere to live."
Major Kidd said the centre was investigating alternative accommodation.
"We have been promised various individual housing from different departments," he said.
A member of staff at the centre, who also asked not to be named, said staff were worried about their jobs and were unable to reassure residents as they had not been given any information.
"We are trying our best to help people but we're going to lose our jobs," he said.
Major Kidd said they were looking for alternatives for staff and did not want to lose them.
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