FEDERAL AID ZONE WANTED; CITY INCLUDES NORTH HOLLYWOOD IN TAX-INCENTIVE PROPOSAL.

Byline: Enrique Rivero Daily News Staff Writer

The city of Los Angeles has applied with the federal government for a second urban empowerment zone, this one encompassing a 10-1/2-square-mile area that includes North Hollywood.

Los Angeles is one of about 20 California cities and perhaps hundreds across the nation that are hoping to get one of 15 urban empowerment zones, which are intended to improve economically depressed areas by attracting or retaining businesses through various lucrative tax incentives.

``I think we should say a little prayer that we have a chance - we have some very strong competition,'' said David Eder, enterprise community and empowerment zone program coordinator for the city.

The U.S. Department of Housing and Urban Development will announce recipients sometime in December, he said.

The proposed zone has a population of 198,500 and would include the Westlake-Pico Union-Beverly Temple areas, and portions of Lincoln, Montecito and Boyle Heights, he said.

The approximately one-square-mile section in North Hollywood includes the area where a 43-acre studio complex has been proposed, the NoHo Arts District and the Community Redevelopment Agency's North Hollywood project area, Eder said.

The San Fernando Valley portion covers two census tracts with a 1990 population of 10,635 and poverty rates of 25.4 percent and 31.4 percent, he said.

In January, a 20-square-mile area that included the Northeast Valley received the designation. Tax credits for this area, which are more substantial than those included in the second round of empowerment zones, kick in on Jan. 1, 2000.

``The city of Los Angeles has a significant proportion of people under the poverty rate,'' Eder said. ``We feel it's justifiable to apply for another empowerment zone.''

Included in the proposed $520 billion federal budget is a provision that would grant each of the 15 designated empowerment zones $3 million for social services programs.