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Agreement Reached in Quake Lawsuit

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From Times Wire Services

Three Bay Area counties still trying to rebuild low-income housing damaged in the Oct. 17 earthquake reached a tentative agreement Tuesday in a lawsuit against the Federal Emergency Management Agency.

Neither side would discuss details of the agreement, but indications are the settlement could include cash grants to cities in San Francisco, Alameda and Santa Cruz counties.

If a final agreement is reached, the money could be used for long-term shelters or to rehabilitate damaged transient hotels.

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The Federal Emergency Management Agency was obligated to provide funds to replace damaged or destroyed low-income housing for 2,070 units in Alameda, San Francisco and Santa Cruz counties, according to Steve Ronfeldt, an Alameda County legal aid attorney.

Much of the damaged housing was in downtown transient hotels. The local governments hope to use some of the money to create long-term shelters.

Although the first anniversary of the devastating 7.1-magnitude Loma Prieta earthquake is less than a month away, no money has been spent for the reconstruction of any of the 2,070 units.

A coalition of groups and individuals, joined by the counties, filed suit last year to force the federal agency to rehabilitate the transient hotels and city shelters for the poor.

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