Sierra Madre : Funds May Be Withheld

The city is entitled to $55,928 in federal Community Development Block Grant Funds this fiscal year but may not get to use the money, officials said Tuesday. The City Council on Tuesday approved earmarking $25,168 of the money for rehabilitation of single-family homes, $16,778 to revitalize and help pay for earthquake safety reinforcement of buildings in the central business district, $8,389 for senior information and referral services and $5,5903 for administration of the grant funds.

However, City Manager Jim McRea said that the city may not receive any of the money because it lacks a main blighted neighborhood under federal Department of Housing and Urban Development regulations. In past years, Los Angeles County officials, who dispense the funds, have withheld the money. McRea said the problem is common to small towns and said he will attempt to persuade county officials to free the money.