HUD Awards $2.8 Million in Quake Relief to Fillmore, Piru : Recovery: Simi Valley will receive an unexpected $5.5 million in assistance, the third largest allocation approved by the federal agency.

Fillmore and Piru have been awarded $2.8 million in earthquake recovery funding, more than a month after the grant was promised to Ventura County, officials said Wednesday.

Under the same emergency program, designed to help areas hit hard by the Jan. 17 earthquake, Simi Valley will get an unexpected $5.5-million boost and Thousand Oaks will receive $500,000.

In all, $127 million in Community Development Block Grants will be paid out to 11 cities and two counties by the federal Department of Housing and Urban Development.

Simi Valley Mayor Greg Stratton said he was surprised and delighted at the size of the grant his city received.

“Obviously we didn’t expect this kind of money,” Stratton said, “We’re going to have to sit down and rethink what we’re going to do with it.”

Shortly after the earthquake, HUD gave Simi Valley a $738,000 grant and said the city could expect to receive a second payment similar in size.

But damage estimates soared to $350 million citywide as applications for aid continued to pour in.

Stratton said the city would probably hold special public hearings to decide the best way to spend the money.

“There are a lot of people out there who still need a lot of help,” Stratton said. “It looks like the city is going to be in a much better position to do something about it.”

Of the $127 million, Simi Valley’s grant is the third-largest awarded by the agency. The city of Los Angeles was awarded the bulk of the funding--$99 million--and Los Angeles County received $7.9 million.

Fillmore City Councilman Roger Campbell said the entire county grant allotment of $2.8 million is earmarked for Piru and Fillmore, which suffered more than $250 million in quake-related damage.

Fillmore officials have known about the grant for more than a month, Campbell said, but held off promising funds to residents until the county application received final approval from Washington.

“It’s finally here and that’s great news,” Campbell said. “It’s a godsend for our citizens.”

Campbell said the city will distribute the funds in the form of loans and grants, for assistance in rebuilding the historic downtown and in helping residents repair their damaged homes.

Although Thousand Oaks received a relatively small chunk of the grant, City Manager Grant Brimhall said he thought the federal formula for allocating funds was fair. He said the City Council at next Tuesday’s meeting will discuss how best to allocate the funds among the private homes and public buildings that suffered earthquake damage.

In Thousand Oaks, the greatest damage occurred at the public library, where the metal ceiling collapsed and a water pipe burst, causing $2.5 million in damage.

But counting all the losses suffered by individuals, including broken china and damage to their homes, the total losses in Thousand Oaks approached $35 million, city officials said.

“There was $10,000 to $15,000 in losses in a whole gaggle of homes,” Brimhall said. “It doesn’t take long for that cost to add up.”

Times staff writers Stephanie Simon and Constance Sommer contributed to this story