Calderdale Council announced last week that the multi-million pound project, which had been due to be finally finished next spring, could drag on until the autumn - up to five months later than planned.
And with the Weavers bar and restaurant set to be bulldozed after Christmas, that would leave Fax without any hospitality facilities - which are required under Rugby Football League operating rules - for the entire National League One season.
Courier Sport understands the club had been exploring the possibility of using a temporary town centre venue to cover the original three month transition period.
But now Steele has confirmed there is a worst case scenario that could see Fax playing outside Calderdale next season.
"I must stress that it would be an absolute last resort, because it would have a major impact on both our supporters and our sponsors, but the possibility remains that we could be left with no other option," said Steele.
"We were unhappy to learn of the latest delays and we will be meeting Calderdale Council at the earliest opportunity to discuss the situation.
"At the moment, we have been told the contractors are due to knock down the Weavers in January, which as things stand would leave us without any catering facilities.
"As a business, that would leave us in a very difficult position.
"The RFL require us to be able to feed both players and officials and we have significant sponsorship commitments to fulfil as well.
"We had been working on a short term alternative to take us through to the original completion date in May, but that is clearly not practical for a full season."
Fax are now set for talks with the Council to look for a solution, the most obvious possibility being a stay of execution for the Weavers.
"We are still very hopeful that we can reach an agreement," said Steele.
Duncan Farr, Calderdale Council's Shay Stadium Project Manager, said: "The Council is planning to meet with the rugby club and we will try to help them find a solution to the problem.
"There is no legal obligation on the Council to provide accommodation for such facilities."