Despondent Neighbor! what should i do??

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Couple of months ago a young couple moved right next doors to me, we really hit it off cause both of them were of my age and very nice! Only a week ago something terrible happened, while driving home from somewhere Sarah and Fazi (i am not mentioning their real names) had an accident and Sarah died on the spot. Fazi was devastated by the loss and ever since has gone into a constant state of being melancholy. Because i was on such good terms with both of them i felt it my duty to stand by Fazi's side in his hour of need, i tried my best to help him out whenever i could but the problem is that since Sarah passed away Fazi has totally become despondent. First it was borrowing groceries which i gladly handed out considering the fact that he has been dealt with quiet a blow and maybe shopping for groceries isnt on his priority list! but with time its getting worse, Fazi has practically moved in my house! he is eating at my place, frequently borrows my car (their car was totaled in the accident) and has made my guest room virtually his own quarters! i have no privacy! i dont know what to do! he's my friend but this cant go on forever! I am totally confused! what should i do? should i give it time and maybe Fazi would return to normal (which seems highly unlikely) or should i politely mention it Fazi that i require some space of my own? i am afraid of the consequences because he considers me his best friend and will be crushed to find out that i want him out! Is it selfish and uncaring of me to want him out of my place and start living his own life again? I dont know what to do next? This is not the first time i have been in a jam because of a friend! but its very different this time! I would really appreciate some good, serious advice from all my fellow mylotters!