The Ministry of Health has assured 71 war veterans that they will not be turned out onto the streets if their Levin rest home has to close.
The home needs at least $2 million to cover deferred maintenance, and address safety issues like smoke detectors and slippery floors.
The Governmenthas offered the home $1 for every $3 that can be found through local fundraising up to $250,000, plus another $150,000 to cover staff entitlements.
But the Levin trustees say that is not enough and the home will probably close on March 31.
Ministry of Health spokesperson Carole Searle says the Levin-Horowhenua area is well served by rest homes, including dementia and hospital services, and there are no waiting lists for subsidised care.
Ms Searle says the Ministry will look at keeping some of the residents together depending on their individual needs.
And Veterans Affairs Minister Mark Burton says there are about 60,000 veterans, and many are in rest homes that get no special treatment from the Government.
But National's spokesperson for veterans' affairs, Richard Worth, says war veterans deserve special consideration in the community and the government should be doing more to help them.
Mr Worth says the homes should be kept open and established as private trusts.
