The Ark shelter in Durban - with its more than 900 destitute residents - has sunk into its "most desperate situation", because of a lack of funds and crumbling buildings.
Ark residents claim parts of the buildings are dangerous because of falling masonry and that the water supply to the shelter has been cut to a trickle.
"We are forced to live like this because we have no money," said the head of the Ark, Pastor Derich de Nysschen. "Our situation is desperate - the worst it has ever been."
De Nysschen said the Ark's problems had been aggravated by the continuing uncertainty over its future.
The Ark has to leave its present premises in the Point area and its proposed move to Albert Park has been blocked because of objections from local residents.
"Our present buildings are going to be demolished, so we don't want to spend money on them.
"We spent R75 000 in the past three years just keeping the place going. We don't want to spend more.
"In some places the ceilings and beams are breaking up. The reinforcing is rusting and concrete is falling down. Just now somebody will get hurt."
De Nysschen said the Ark was more than two months behind with its payments for water.
"We have turned the water supply down to a trickle - to save money - but we have some underground leaks. The pipes are very old.
"It is not healthy living like this. There are squatters in the city living in better conditions. I am afraid we could end up with an outbreak of disease."
He said it was essential for the Ark to have a "reasonable supply" of water and to maintain standards of cleanliness.
"We have 64 Aids patients in our four hospital wards and 60 destitute children in our creche."
De Nysschen said the Ark was "shamelessly used by all and sundry" - the Metro Police, SAPS, churches, the social welfare department and other government bodies - without them giving it financial support.
"Even those who are against us use us. But they don't want to support us.
"Our application for a grant-in-aid from the city's decision makers was unceremoniously rejected because of our stand on religious benefits for the individual."
He felt the unicity council should reconsider its stand on the issue. "We are a Christian organisation.
"We operate on Christian rules and give out Christian information. That is to be expected. But we take people of all religions. And we do not force our religion on anybody."