$10-Million Hike for Quake Repair Urged

Adding to another quake-assistance program, a Los Angeles city housing panel backed a proposal Monday to increase by $10 million the amount of money available for owners and investors interested in repairing quake-damaged apartments.

The city will issue $10 million in tax-exempt bonds to help private banks and lending institutions finance repairs of about 500 properties citywide, according to the proposal approved by the City Council’s Housing and Community Redevelopment Committee.

The money will be added to the $24 million already offered in the so-called Loans-to-Lenders program, which uses tax-exempt bonds to help banks make low-interest loans to the owners of quake-damaged buildings and investors who want to buy and repair damaged properties.

“It’s just another item on the menu” of assistance programs, said Robert Moncrief, major projects manager for the city’s Housing Department.

The previously approved $24 million is being loaned by Home Savings of America and First Federal Bank, two lending institutions that agreed to participate in the program. The new $10 million will be loaned by Quaker City Federal Savings, a Whittier-based savings and loan.

The banks are responsible for paying off the bonds and are backed by the Federal Home Loan Bank Board.