A PRESTON charity is a step closer to setting up a community for homeless people after being granted almost £400,000 in funding.

Emmaus Lancashire is trying to set up a centre where 30 people can become self-sufficient, working for their living by doing recycling and repair work.

On Tuesday the group was awarded £382,500 from the European Regional Development Fund which aims to correct regional imbalances and support the development of regions.

The latest windfall follows an anonymous donation of £1million in June.

Chairman Ted Lowes said the cash will ensure the future of the project.

He said: "This is really wonderful news. We have been striving for seven years to establish an Emmaus community in or near Preston and now, for the first time, we have the necessary financial security to underwrite the project. Put simply, this money at last guarantees that the community will be a reality."

The charity already has its eye on a site in Preston but needs around £700,000 before they can buy it.

The centre would also include a cafe and a shop selling furniture and recycled goods.

The charity is currently waiting for the result of a £300,000 lottery grant application and appeals to charitable trust funds.

Danny Gallagher, project manager, put the bid together with the charity's steering group, Preston City Council and private company, Funding Finders, based in Winckley Court, Preston.

He said: "This really is fantastic news not just for Emmaus Lancashire but for the city of Preston.

"Emmaus communities genuinely do bring hope to homeless people who have a real desire to rejoin the wider community, and wherever they have appeared they have quickly become a cherished part of the local society."