You are right - without sorting their ground out, they won't get far.
They may have more options though than the albion had - a 5000 to 10000 seater should be easier to develop and find a site for than the much larger capacity stadium BHAFC wanted.
Sure it is BHA which has objected, as they were supposed to be on board?
Maybe they've changed their mind of course, or maybe it is some other council/safety body which has these concerns.