There are calls for an Auckland men's refuge to be shut down after an undercover investigation by 1 NEWS.

The Salvation Army is calling for the Auckland men's retreat WISE Guys to be closed amid allegations of stabbings and drug use.

Set up four years ago on the grounds of the former Kingseat psychiatric hospital, the large boarding house can accommodate up to 50 people.

Describing itself as an educational and therapeutic men's retreat, WISE Guys provides shelter to many who would otherwise be homeless.

However, a former WISE Guys resident has joined the Salvation Army in speaking out against how the place is run and calling for it to be closed down.

"Twice there's been stabbings there," the former resident said, who 1 NEWS has chosen to identify only as Tim.

"Everything's been swept under the carpet and nothing's been said."

WISE Guys co-founder and managing director, Brent Milesi, rejects Tim's allegations of violence, saying: "I'd say he's absolutely lying."

However, 1 NEWS understands police were called out to a methamphetamine-fuelled stabbing in June in which one person was arrested.

And, police were called out a month earlier to another assault with a sharp weapon.

DRUG USE ALLEGED

Tim, who lived at WISE Guys for six months earlier this year, also says while living there he could smell drug use "just about every day" and said some tenants were even dealing drugs.

Mr Milesi also denies those allegations.

"He's lying, there's no drugs here," Mr Milesi said.

Mr Milesi also denied alcohol features on site.

Alcohol is supposed to be banned at WISE Guys and anyone caught drinking on site faces immediate eviction.

But a 1 NEWS hidden camera uncovered otherwise, with a house manager revealing "we actually had a bar, our own little bar down there… $2.50 for a little half pint of beer."

Mr Milesi denied there has ever been a bar on site.

"We never had a bar on this place, wrong, no," he said.

All tenants at WISE Guys are beneficiaries, paying $285 a week for their room, with little left over to pay for food.

The Salvation Army's Ted Kim says they noticed more and more tenants were coming to them hungry, prompting them to offer food parcels to WISE Guys management.

But those offers were rejected.

With around 40 - 50 tenants we estimate WISE Guys gets between $600,000 - $750,000 a year in rental payments – money going from Government coffers, to the business run by Mr Milesi and his partner.

Mr Milesi says services provided to residents include counselling, social activities and transport to both medical appoints and visits to Work and Income New Zealand.

Salvation Army director Ian Hutson said refuge facilities like WISE Guys are desperately needed to help the homeless and needy.

However, he believes such facilities must be well run and that WISE Guys should be shut down.

"The standard can't be lifted up, it needs to be closed down," Mr Huston said.

Tim also called on the facility to be closed.

"If I were Government, I would shut it down," he said.

The Ministry of Social Development says it shares many of the Salvation Army's concerns.

As a result of that, Auckland Council and the Ministry of Business, Innovation and Employment have inspected the property and found no building compliance issues.

While WISE Guys isn't one of the Ministry of Social Development's contracted providers, it will continue to monitor them.