Huntly House has received local authority funding since 1984.
However, councillor Peter Corbett said the council was under pressure to provide "wet" hostels where rules on alcohol are less strict.
Mr Corbett, councillor for Merkinch, said council officials have warned that the authority cannot continue funding Huntly House in its present form.
He said Highland was under increasing pressure to ensure care for all homeless people - including those who are disruptive because they may have addiction problems.
Mr Corbett said: "Huntly House will have to take that on board."They do have highly trained, highly qualified staff who work 24 hours a day, seven days a week, so they do know how to deal with clients such as these."
So a home which tries to create a peaceful and safe environment will have to take disruptive p***heads - because hey, their lifestyle is as valid as anyone else's.
A few years back Robert Whelan of Civitas wrote The Corrosion of Charity, on how :
The emergence in the late twentieth century of a rights-based, universal welfare state has posed a dilemma for the voluntary sector. Unable to compete with the state in terms of resources or coverage, many charities have become little more than government sub-contractors, charging fees to provide services. As a result, charities have lost some of their independence, their capacity to be innovative, and their special significance as primary institutions of civil society, providing training grounds for good citizenship.
The Sally Army are still a lot more than Government subbies - for the moment. But they're supping with the Devil, and will need a lang spoon.