The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Sunday, July 23, 1995                  TAG: 9507210270
SECTION: VIRGINIA BEACH BEACON    PAGE: 20   EDITION: FINAL 
SOURCE: BY NANCY LEWIS, CORRESPONDENT 
                                             LENGTH: Medium:   80 lines

$253,000 OF FEDERAL GRANT WILL BE USED TO HELP HOMELESS UNDER THE PRESENT PLAN, THE FUNDS WOULD GO TO THE WINTER SHELTER PROJECT AND TO SAMARITAN HOUSE.

About $253,000 of a $4.6 million federal housing grant received by city officials Thursday will go to help homeless individuals and families in Virginia Beach.

The funds might be used to help pay operating costs of a proposed permanent homeless shelter should it open before the end of fiscal 1995-96, said Andrew Friedman, the city's director of housing and neighborhood preservation. Under the present spending plan, the $253,000 would go to Samaritan House and the city's Winter Shelter Project, among other programs already in place.

Earlier this month, an advisory committee charged with developing a plan to spend $800,000 in federal funds to help the homeless concluded that a permanent, 24-hour shelter is needed to serve as many as 100 homeless people, including a limited number of families.

The plan, expected to be presented to the City Council Aug. 22, recommends that the city acquire a site for the facility but gives only general locations for sites considered by the board's subcommittee.

Five sites were mentioned in the committee's final report, two of which included existing buildings.

One is in the resort area and is described as a one-story building previously used as a warehouse. A specific address is not listed. The asking price for the 10,000-square-foot structure is $415,000.

The other site that includes an existing structure is near Route 44 and Lynnhaven Parkway and is a two-story, 8,500-square-foot office building on the market for $625,000.

Both buildings have the advantage of being close to major roadways.

Drawbacks to the resort area building are that it might conflict with development plans for that section of the city and that it needs substantial rehabilitation and interior work, the report said.

On the other hand, the Lynnhaven structure is in good condition and needs only modifications.

Three land-only sites also are included in the report - one near Birdneck and Laskin roads, another near the Municipal Center and the third near Virginia Beach Boulevard and Parks Avenue.

The committee recommended that the city acquire the land or land and building and then contract with a service provider to operate the facility.

Judeo-Christian Outreach and Volunteers of America are the two providers known to be vying for the contract.

The $4.6 million city officials accepted Wednesday is the most ever received by the city for housing and homelessness - more than $1 million more than last year's allocation. But Friedman warned that future federal allocations to Virginia Beach and other cities could be cut.

At city hall ceremonies Thursday, Mayor Meyera E. Oberndorf thanked Joseph K. Aversano, director of Community Planning and Development for the U.S. Department of Housing and Urban Development, and lauded the excellent job local officials have done in monitoring the expenditure of federal grants aimed at increasing home ownership and decreasing homelessness.

``It's a day for celebration,'' said Oberndorf. ``Virginia Beach, a young city, 32 years ago decided it wanted to be certain that HUD money was used in target communities'' not for ``shopping centers'' as other cities have done.

Aversano said that the city's spending plan for HUD funds was the best of 16 he had reviewed.

In addition to the money for homelessness, the rest of the $4.6 million in new grant money will be used to:

Fund relocation costs for residents of Burton Station whose property is acquired by the city.

Support acquisition and rehabilitation of vacant, foreclosed housing units.

Support comprehensive code enforcement in designated areas.

Fund a citywide homeowner rehabilitation loan program that will leverage bank funds.

Provide increased home ownership opportunities for low- and moderate-income families.

A number of nonprofits also have applied for a piece of a $900 million HUD grant to help the homeless. by CNB