BIGGER FUNDING FOR VALLEY LEADERS REJOICE AS MAYOR INCREASES SHARE OF FEDERAL BLOCK GRANTS.

Byline: James Nash Staff Writer

Mayor James Hahn has designated 25 percent of Los Angeles' share of federal grant money to the San Fernando Valley - nearly three times as much as the 9 percent he proposed last year, which many Valley leaders called an affront to the area.

Valley leaders said Monday that they were gratified by Hahn's decision to boost the Valley's share of federal block grants for programs and services for low-income residents.

Hahn set aside $100,000 for the Economic Alliance of the San Fernando Valley - an amount equal to the funding the Los Angeles Department of Water and Power previously provided to the economic-development organization. In December, the DWP announced that it was withdrawing its funding, which had represented Los Angeles' entire contribution to the economic alliance.

Bruce Ackerman, the alliance's president, on Monday hailed Hahn's use of the $123 million in federal block grant funds.

``If you look at the Valley, it's got areas of great poverty as well as affluence,'' Ackerman said. ``It's got housing needs probably unequaled anywhere else in the city. We need this grant funding. This is excellent news for the Valley.''

Hahn and the 15 City Council members have earmarked the grants for homeless shelters, gang-prevention programs, rehabilitation of dilapidated homes and apartments, sidewalk repairs and other projects in lower-income areas.

About $12.4 million of the total isn't earmarked for specific projects. Hahn controls $3.8 million of that, and he vows to spend 40 percent of his portion in the Valley, spokesman Yusef K. Robb said.

Valley leaders criticized Hahn last year for initially designating only 9 percent of Los Angeles' block grant money on Valley projects. Hahn acknowledged the criticism by increasing the Valley's share to 21 percent.

Deputy Mayor Renata Simril said Monday that the decision to further increase grant funding in the Valley comes in response both to last year's controversy and to the growing social needs in the Valley. The area has more than one-third of the city's population and an estimated 30 percent of its poor. Poverty in the Valley increased by more than 50 percent in the 1990s, according to U.S. Census data.

Simril said the Valley includes about 25 percent of Census tracts in Los Angeles with high poverty levels, a statistic reflected in the distribution of grants this year.

``Absolutely, this was a deliberate policy decision on the part of the mayor,'' she said. ``The San Fernando Valley includes its share of low- to moderate-income Census tracts, and the mayor wanted to make sure those areas were getting their fair share of block grant funding.''

Council President Alex Padilla, whose district includes some lower- income Valley areas, said he was pleased by Hahn's decision to increase funding in the Valley.

``It was something very important to me, as evidenced by our efforts last year,'' Padilla said, referring to Valley council members' lobbying of Hahn for more funds. ``It's also wise on the city's part because we've seen a rise not only on the population of the Valley, but also in the percentage of poverty.''

Paul Waters, secretary of the Studio City Neighborhood Council and executive director of L.A. Valley Pride, said the city's decision to increase funding for the Valley reflects a newfound maturity on the part of city leaders.

``The San Fernando Valley is not Mayberry,'' Waters said. ``We left that many years back. This is the city, with all the city problems that exist anywhere in Los Angeles.''

James Nash, [phone]

james.nash(at)dailynews.com