The community house, located at 1315 Martin Luther King Jr. Blvd., will offer a transitional housing program to help men who are homeless recover and become productive members of the community.
The project was set to be completed in early spring of 2015 but is now being pushed back until summer of 2015.
John Dorward, the executive director of the IFC, said the project has taken longer to start because construction costs have gone up.
“We all have worked on it on a daily basis until we got it back down where the budget is doable,” he said during the IFC annual meeting Thursday.
The new shelter will have 52 transitional beds and 17 emergency beds used for inclement weather.
The town of Chapel Hill owns the current shelter located on the corner of Rosemary and North Columbia streets. Town officials haven’t decided what to do with the building yet, but the IFC’s community kitchen will continue to operate there.