People who live in the Salvation Army Resident Centre are facing a sharp increase in food and rent this spring, with some saying it might force them out into the street.

"It’s outrageous," said one man living at the centre, who asked CBC News not to use his name.

He lives in a dorm room with eleven other men at the ARC, which houses people who are recovering from addiction, dealing with health issues or who are unemployed.

In April, the man’s room and board will increase by $130, to $600 dollars a month -- close to his entire monthly income.

"Two-hundred dollars [left] for incidentals and medication, it'll be a hardship," he said.

The man said he’s been told that he might be able to find extra funding if he needs it. But he’s worried that if he isn’t able to find extra money, he’ll be out on the street.

"I have no idea, I have no place to go."

Officials at the Salvation Army said the rent increase is unfortunate, but absolutely necessary to keep the centre open.

"The rates they've now set are not unreasonable," said Maj. Pam Goodyear.

She said the centre has avoided raising rents and food prices for several years, but it is unavoidable now.

"That is a significant jump, but we're also bringing that in line with standard AISH rates. Costs have gone up for housekeeping services for social and leisure activities," she said.

"If we don't charge enough to cover the costs, then we could be looking to close our doors."

Goodyear said they will seek extra subsidies for residents who can’t afford the increase.