The Hacienda is closed.
The Fuh Chun Hotel is just across from the train station on the left as you exit and has rooms from NT500. It’s old but most rooms are fine. The number is 2228 3181 and the address #1 Zhongshan Rd. The two ladies who run the place are sweet as pie and offer guests fresh fruit everyday. I stayed there once when I was sick and the grandma delivered a plate of cut starfruit, a bottle of sarsparilla and salt to my door at no charge.
The only true hostel left in Taichung is run mostly for students. It may or may not let you in. The address is #64 Dehua Street. The number 2231 0879.