The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, May 11, 1996                 TAG: 9605110291
SECTION: LOCAL                    PAGE: B5   EDITION: FINAL 
SOURCE: BY TERRI WILLIAMS, STAFF WRITER 
DATELINE: SUFFOLK                            LENGTH: Short :   32 lines

GOOD NEWS FOR SUFFOLK: $896,500 IN FEDERAL REDEVELOPMENT FUNDING

For the past several years, the city has had nothing but bad news about federal housing money.

Federal officials frowned three years ago when the Redevelopment and Housing Authority mismanaged a $1 million federal rental rehabilitation grant.

State and federal officials have demanded that $157,000 of that money be repaid.

But city officials were pleasantly surprised Friday when they learned Suffolk will receive $896,500 from the U.S. Department of Housing and Urban Development.

Cynthia D. Rohlf, assistant to the city manager, said the money is one of the tools the city needs to move toward redevelopment.

The money will be used for housing, homelessness and economic development. Roughly $119,500 will go toward a home consortium program which will provide revolving loans to home buyers and cover demolition costs for dilapidated structures.

The rest - $777,000 - is in Community Development Block Grants.

A public hearing on the block grant money will be held on Wednesday at 7 p.m. at Suffolk City Hall. by CNB