Now the facade of the Victorian building which “has given so much back to Ballarat” will be restored, along with its parapet and verandah, thanks to a $700,000 state government grant announced on Wednesday.

Guest House manager Warwick Smith said the restoration would lift the spirit of residents. It will also give residents access to the verandah which looks over Lydiard Street.

The building, which was bought by UnitingCare in 2013, was built as a coffee palace in 1886 and now houses up to 60 residents each night.

“This building has given so much back to the people of Ballarat without them knowing, for the state government to give back to the building and continue its work on is amazing and will really benefit the residents,” Mr Smith said. 

Reid’s Guest House resident Shaun Saker has found refuge at the guest house four times.

Without the facility Mr Saker said he would have been sleeping on the streets. 

“Over the years it’s given me a place to stay when I’ve had nowhere to go,” he said.

“This place is a lot of better than some of the places I’ve stayed in.”

Mr Smith said the facility was “the last backstop” before the street. 

The closure of similar accommodation has seen the facility reach capacity most nights. 

“The facility is crucial. Six years ago there were other options for the residents that are here now,” Mr Smith said. 

“Without Reid’s you’ve got 58, 60 people who have nowhere to go.”

Planning Minister Richard Wynne said the conservation works would preserve the historic building as well as securing the future of its current incarnation as supported accommodation. 

No rooms would be closed during the project, Mr Wynne said.

“Reid’s Coffee has a proud past, and now we’re giving Reid’s Guest House an equally secure future,” he said.

City of Ballarat also contributed $60,000 to the project.