SAN FERNANDO : City Readies Plan for Quake Relief

The city of San Fernando has put together a tentative plan on how to spend an additional $900,000 in earthquake relief aid intended for businesses, homeowners and residents who have not received the federal help they needed.

Much of the money is earmarked for low-interest loans and grants, said Robert Kishita, associate city planner. However, details--such as interest rates--have not been worked out.

A hearing on the spending plan is scheduled for the next City Council meeting on Tuesday.

The city got word early this month that it was eligible for the additional aid, but city officials had to scramble to meet a deadline last week to put together a tentative program to qualify for the money.

The money is supplemental Community Development Block Grant funds available through the Los Angeles County Community Development Commission.

Those funds can be used only for earthquake relief not available from the Federal Emergency Management Agency or Small Business Administration.

About $250,000 of the additional money may be used to help the city put up its 2.5% match for the federal earthquake relief aid it has already received, Kishita said.

“This is going to help us,” Kishita said, adding that it means being able to use funds that would have been used to match other grants. “It frees up our own internal resources.”

But, more importantly, he said, the city will be funneling money into three new projects--commercial rehabilitation, residential aid and new housing programs.

Under the commercial rehabilitation program, city officials envision giving 25 grants of about $3,000 to $4,000 to San Fernando businesses, as well as offering loans of about $20,000 to help those businesses that did not get enough earthquake aid.

Some businesses were in no position to qualify for a Small Business Administration loan before the earthquake and could not get the earthquake relief, officials said.

“It’s primarily a bricks-and-mortar type of program,” said Kishita, explaining that the money is expected to be used to make repairs for earthquake damage.

For residents, the city is considering helping 35 to 40 properties, whose owners would receive either a $5,000 grant or a loan of up to $35,000.

“We’re trying to assist people where the resources ran dry,” Kishita said.

The city also is considering four or five loans of about $20,000 each to help new construction projects to replace housing lost to the quake.

But Kishita pointed out that this extra funding will not meet all the needs in the city.

Some buildings have been damaged much more than the entire $900,000 package can meet, he said.

The program can be altered by the City Council after next week’s meeting and public hearing.

City officials do not have a schedule yet as to when they can expect to receive the funds, Kishita said.