DWP TO GIVE $10 MILLION FOR HOUSING PROJECTS.

Byline: Rick Orlov Staff Writer

Even as it seeks an 18 percent hike in water rates, the Los Angeles Department of Water and Power agreed Wednesday to spend $10 million to help fund the city's affordable housing over the next decade.

The DWP will provide $2 million in the first year, and $1 million annually thereafter, to the city's Housing Department, which will lend it to developers of affordable housing.

``One of the keys to keeping jobs in Los Angeles is providing housing that our working families can afford,'' Mayor James Hahn said in a statement. ``These funds will finance thousands of housing units that will provide shelter and stimulate economic growth in neighborhoods throughout the city.''

The city has been amassing $100 million from various sources for an affordable-housing trust fund to help finance the program.

The DWP had been criticized for questionable spending practices, including millions of dollars spent on lavish parties; development of scooters and electric leaf blowers; $750,000 for a Sacramento lobbyist; and, just last month, $175,000 for a float in the Tournament of Roses parade.

City Controller Laura Chick, who has been critical of DWP spending practices, said she is seeking information on the affordable-housing allocation.

``I've received no information on this. I am requesting a briefing on how this fits into the DWP's core mission,'' Chick said in a statement.

Deputy Mayor Doane Liu said the agency has been working for several months to set the money aside for the housing program.

``This is a program being funded from the power side and is not involved in the (water) rate-increase proposal,'' Liu said.

The DWP's economic development fund is a $20 million-a-year program that was started in 2001 to help boost businesses.

Other officials said it is proper for the proprietary department to participate in the development project because of the shortage of affordable housing citywide.

``The housing crunch in Los Angeles is at crisis proportions,'' said Councilman Eric Garcetti, chairman of the council's Housing, Community and Economic Development Committee. ``With a powerhouse like the DWP fighting the crisis, we can increase production of affordable units.''

Council President Alex Padilla described the project as a ``win-win'' situation.

``It is money the DWP would be spending otherwise on economic development issues and is, instead, being used for housing that will be affordable but also energy-efficient and create new customers for the DWP,'' he said. ``It will pay for itself in the long run.''

The DWP rate increase for its water system, the first in more than a decade, is pending in council committees where it is expected to receive tough scrutiny.

Councilman Tony Cardenas, who chairs the council's Commerce, Energy and Natural Resources Committee, has voiced skepticism on the need for the hike.

Staff Writer James Nash contributed to this report.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com