The man found brutally stabbed to death in his own flat in Broomfield Road has been named by friends as 39-year-old Colin Evans.
The volunteer and resident at homeless charity Sanctus was found collapsed in the property at about 8.30am yesterday (Tuesday, September 30).
Detectives are still questioning a 29-year-old man in custody, arrested on suspicion of murder, as of 3pm this afternoon.
Mr Evans, originally from the east end of London and previously of St James Road, Braintree, was already known to police after racking up more than 80 convictions.
These included counts of threatening behaviour, burglary, criminal damage and cannabis possession.
He was also handed a five-year ASBO in 2010 which barred him from a list of roads in Braintree and the town's Jobcentre Plus.
Yet after first falling into life sleeping rough in the streets of Chelmsford, friends have told the Chronicle how he was turning his life around.
He started volunteering at Sanctus café, which also has accommodation for the homeless above, when he first visited the refuge for free hot meals in December 2011.
He went on to help serve teas, run errands, mop floors, redecorate the café and was starting to buy collectables for his own car boot sale business.
His turnaround was cut tragically short however when he was found dead in the same room as his beloved seven-year-old Staffordshire Bull Terrier, Sweep.
A post mortem examination is yet to take place on Mr Evans' body.
Essex Police remain at the city council car park behind the flats, which also lies behind The Ship pub, and at the cordoned off Central Park skate park.
Railway Street has been reopened after it was cordoned off yesterday.
Anyone with information is urged to call Chelmsford detectives on 101.