GROUP EYES EAST SIDE IN NEWHALL; COMMITTEE PITCHES UPGRADING NEIGHBORHOOD'S OLDER HOMES.

Byline: Teresa Jimenez Daily News Staff Writer

East Newhall, on the other side of the railroad tracks and just a few blocks away from the downtown area, is filled with quaint cottages from the 1930s, some that have long since seen their peak.

But look past the beat-up roofs, the peeling paint and the garbage that sits in front of some of the houses and you can see the shuttered windows, the porches and wood siding that can transform just plain old houses into old-style bungalows, members of the Newhall Redevelopment Committee say.

Just like downtown Newhall, the surrounding residential areas could use a boost. But members of the committee hope that with new businesses, such as cafes, boutiques and galleries along San Fernando Road, the resurgence will spark improvements throughout the area.

``The hope is that once Newhall begins to improve - and it's happening right now - we hope that property values will increase,'' said committee member Mary Merritt. ``Monrovia and Claremont are good examples. Those areas also had housing problems and they have improved with the downtown areas.''

The redevelopment committee in the coming years will decide how to make improvements to the residential areas surrounding downtown.

The neighborhoods, considered blighted, will benefit from 20 percent of any money generated by the redevelopment district's businesses, said Glenn Adamick, associate planner for the city's Community Development Department.

The money could be used for any number of programs, Adamick said. The redevelopment agency could offer low-interest loans or grants for home improvements, he said. It also could use the money for construction of a new complex for seniors or low- and moderate-income people, he said.

As director of the Santa Clarita Valley Service Center, Lupe Lopez said, she often receives complaints from tenants who have difficulty getting improvements made to their homes. Improvements to any old housing would benefit the community, she said.

``Any improvements or maintenance of housing stock makes people proud of their neighborhoods,'' Lopez said. ``You get a lot more community pride. Even if it's just new paint or a new door - all that helps.''

The ideas for improving the Newhall neighborhoods will have to wait until the agency actually has money. The redevelopment group currently is operating with money borrowed from the city, Merritt said.

``We don't have the money at all,'' Merritt said. ``We are in hock.''

Still, some building owners in the Newhall area already have made improvements on their own. Allen Seward, a local geologist, remodeled an old house on Chestnut Street, Merritt said. The house is used as office space.

``There are some beautiful homes in Newhall. There are a lot of possibilities,'' Merritt said. ``The money could be used for improving the wood houses, for window improvements - old houses need window work. It could be used for all the things old homes desire and need.''

Merritt also suggested that the redevelopment money areas could be used to relocate residents if a developer is interested in building a large-scale project.