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

DATE: Tuesday, October 17, 1995              TAG: 9510170271
SECTION: LOCAL                    PAGE: B7   EDITION: FINAL 
SOURCE: BY TERRI WILLIAMS, STAFF WRITER 
DATELINE: SUFFOLK                            LENGTH: Short :   41 lines

SUFFOLK HOUSING BOARD DIRECTOR TO STEP DOWN

James P. Armstrong, executive director of the Suffolk Redevelopment and Housing Authority for nearly two years, will step down Dec. 31.

Armstrong, 47, said Monday he plans to pursue his doctorate degree. He declined to say where.

Armstrong became director in March 1994, after Executive Director Jan Rountree resigned under pressure.

He faced a turbulent agency. One week after Rountree - who, now married, goes by Augustine - left, a federal audit confirmed that the agency had mismanaged a $1 million grant program to rehabilitate rental homes.

And recently, Armstrong predicted that the authority won't get as much federal money as in past years. Grants for drug elimination and agency operations will be substantially reduced, he said.

``Housing authorities aren't going to remain the same,'' he said. ``We're not going to have tons of money to do whatever we want. It does seem to me to be a difficult time to manage public agencies . . . but I've weathered difficult times before.''

John B. Faircloth, a commissioner and former chairman, said of Armstrong, ``He's done a superb job. He came in at a very precarious time. It takes a unique person to deal with those problems.''

The authority owns and operates 466 public housing units in five communities and manages more than 1,200 subsidized-rent units. It has an annual budget of more than $3 million. Armstrong previously was director of the Hampton Redevelopment and Housing Authority.

The Suffolk board is seeking candidates for director. No timetable was given, but Faircloth said he anticipates that the selection will be made before Armstrong leaves.

KEYWORDS: RESIGNATION by CNB