ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, November 5, 1993                   TAG: 9311050317
SECTION: CURRENT                    PAGE: NRV1   EDITION: NEW RIVER VALLEY 
SOURCE: STEPHEN FOSTER STAFF WRITER
DATELINE:                                 LENGTH: Medium


STATE OKS LOAN FOR GROUP HOME IN FLOYD COUNTY|

VMH Inc. of Christiansburg will get the $350,000 loan it needs to build a controversial group home for troubled youths in Floyd County, officials said this week.

The Virginia Department of Housing and Community Development last week approved a commitment to the loan, which leaves only the legal paperwork to be written up, a task which should be completed any day, said Jeffrey Michael Meyer, a program administrator for the department.

``We feel that it's an important project,'' Meyer said. ``From our perspective ...it makes sense.''

Once the commitment is in hand, VMH can use it to buttress a request for construction financing to build the 16-bed facility on a 30-acre plot in the Possum Hollow section of the county, near the Montgomery County line.

Janaka Casper, VMH's executive director, said he had a private commitment to provide construction financing, but declined to name the source. The department's loan would be paid off in mortgage payments over 20 years.

Linda DeVito, who helped organize a 374-signature petition opposing the home, expressed disappointment, but said: ``We pretty much knew that was going to happen. There's not much we can do.''

Floyd County has no zoning laws, which effectively prevents any legal method of stopping the home from being built. VMH, formerly Virginia Mountain Housing, attempted to build a similar home last year in Giles County, but was thwarted when the county would not change its zoning laws.

The home would be used to treat abused, abandoned and truant children from the New River Valley who would normally go to other homes around the state. There is no similar facility in the valley.

Last month, 50 to 60 people attended meetings, angry at what they perceived as attempts by VMH to sneak the project in quietly. They questioned the site's isolation, and whether VMH had properly considered issues like emergency crew access and severity of Floyd winters.

``They really don't realize where they're coming,'' DeVito said.

Meyer, who attended the meetings on behalf of the department, said the issues raised were not serious enough to prevent the loan's approval. He said questions raised about emergency access and the value of the land - which will cost VMH $60,000 - were answered satisfactorily.

Casper said he hopes to close the land deal by Nov. 15. Construction could start as soon as the next day, and should be completed within six months, he said.

VMH, which has no experience running a group home, has formed Tekoa Inc. for that purpose. Tekoa, which has yet to hire staff for the home, would then need to obtain licensing from the Department of Social Services.

Casper said he would be amenable to meeting with citizens again when the question of licensing arises, and DeVito said she would press for that.

``Our only avenue was to stop the loan from going through,'' she said. But ``we're not going to throw in the towel.''



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