A police car cruises past the back alley entrance to the Granville Street HEAT shelter. (CBC)One of two emergency shelters under Vancouver's Granville Bridge will be closed immediately under the terms of deal reached between the city and the province.

Vancouver Mayor Gregor Robertson and Housing and Social Development Minister Rich Coleman agreed on Sunday that funding the 36-bed shelter at 1435 Granville St. will end, and the shelter will close on Wednesday.

B.C. Housing will move as many people as possible from the shelter into new accommodation, the province said in a release Monday.

The second no-barrier emergency shelter at 1442 Howe St. will remain open for 30 more days while officials attempt to solve some of the complaints with a community consultation process.

If the province is satisfied that the neighbourhood's concerns are sufficiently addressed, the shelter will continue to be funded until April 30, 2010, said Coleman's office.

Temporary funding extended

Robertson opened the two Homeless Emergency Action Team (HEAT) shelters, along with three others, on a temporary basis last December, and funding was extended in the spring in an effort to keep them open year-round.

The HEAT shelter on Howe Street will remain open for 30 more days while city official meet with residents. (CBC)

But residents complained the no-barrier shelters, which were open all night to intoxicated and drug-using homeless people, created too many problems in the upscale neighbourhood on the north side of False Creek.

Local residents alleged since the shelters opened they have had to deal with a plague of open drug use and dealing, public urination and defecation, prostitution and public sex, trespassing, theft, aggressive panhandling and harassment outside their homes.

Last week, Robertson promised shelter staff will be more selective about whom they admit; those using drugs in and around the shelter will be kicked out, and shelter users will not be allowed out of the buildings without supervision.

The three other HEAT shelters — located at 51B Cordova St., 240 Northern St., and the First United Church at 320 Hastings St. — will receive funding until April 30, 2010, under the terms of the deal.