While incredibly grateful for the generous offer, they felt getting the project up and running in other ways would be a better use of donated money.
"I had a talk to the Limitless Hope trustees it was between $200,000 to half a million to put it back together, just to put it back together, it would have to be commercial piles which are different," Mr Swannell said.
"Working with the house was going to be big and not very cost effective for the purpose, it was actually going to limit us," Mrs Swannell added.
Having six bedrooms and all in one building would prove an obstacle when they had multiple families staying.
They thanked Property Brokers Hawke's Bay manager Paul Whitaker and Hawke's Bay Today for their time and commitment in spreading the word about Limitless Hope.
"We are still 100 per cent behind the Swannell's, this is a bump in the road we have no doubt they will achieve their goal in helping others," editor Andrew Austin said.
Mr Whitaker vowed to continue his support for the cause and wanted to keep close ties forged with the Swannells before this decision was made.
As for the fate of the building on St Aubyn St - that was still very much up in the air.
"Unfortunately now due to time constraints if we can't get somebody to take the building in the next three weeks, it will have to be removed and stored or even possibly destroyed," he said.
The couple assured everyone who had donated and backed them that all funds raised would still go toward an emergency shelter for the region.
Hastings Mayor Lawrence Yule was actively working to get some land for the Swannells and supported their change of plan.