A man and his wife who sold their home to help the homeless in Rotorua has been left stunned their night shelter's been forced to close.

Visions of a Helping Hand founder, Tiny Deane, says he's had to shut up shop over fears he'd be fined 200-thousand dollars because the property isn't compliant with fire laws.

Tiny Deane told Mike Hosking says they told the building inspectors about the vulnerable people using the shelter, including a terminal cancer patient and the elderly.

"We had two elderly guys and he said 'no, if they snooze and fall asleep you've gotta shake them or else we'll evict youse on the spot."

LISTEN ABOVE AS TINY DEANE TALKS TO MIKE HOSKING