Work on a new homeless shelter in Midland has been brought to a standstill.

Guesthouse Shelter CEO Robert Sykes says they’ve run out of money and had hoped a donation campaign was going to bring in more money. They still need $150,000.

“We hoped that people would donate while we were actually under construction, and the level of donations didn't reach anywhere near where we needed."

Now, staff at Guesthouse are facing another challenge – an increase in the number of people that to be accommodated overnight.

Sykes says a lack of affordable housing in the area is partly to blame.

Midland Mayor Gord McKay is all too aware of the issue.

“We've had housing waiting lists that have gone on for decades, so we've got to look at new ways of doing things. One is to allow second units, that is, another living unit in a single home. Another thing we're looking at is tiny homes.”

In the short term, the newly built shelter would be able to accommodate almost twice as many overnight guests as the current one.

"I’m feeling frustrated and disappointed just because I know we're so close," says Sykes.

While this project may look like a big job to accomplish in just a few months, staff at the Guesthouse say they have a lot of volunteers and donated materials that will help to make it possible.