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Norfolk City Council unanimously agrees to buy Budget Lodge for $4.5M to serve as homeless shelter

NORFOLK, Va. (WAVY) — Norfolk leaders have agreed to purchase a city motel to serve as the permanent location for its homeless shelter.

On Tuesday night, Norfolk City Council unanimously approved $4.5 million to purchase the Budget Lodge at 1050 Tidewater Drive.


The property has been owned by Vijay LLC since October 2019.

Earlier this month, City Council approved up to $140,000 to lease the property to operate as a homeless shelter. The lease would be in effect at a price of $40,000 per month until the sale of the parcel was finalized.

The city homeless shelter has been in a temporary location at the old Greyhound bus station on Brambleton Avenue in the NEON District throughout the summer and early fall.

The Greyhound station was converted on May 1 into the temporary shelter, featuring about 55 tents and services from community organizations. The city also worked to improve the shelter with air conditioning and doors, walls and a roof for outdoor units, expanded sleeping areas and onsite laundry.

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