Housing Aid Extended for Victims of Quake : Recovery: HUD’s decision, which affects 11,000 low-income families in the region, keeps vouchers in effect until Dec. 31.

The federal government has extended temporary housing subsidies to thousands of displaced earthquake victims for almost six months in response to the continuing need of many who have been unable to find an affordable place to live.

Monday’s decision, which affects 11,000 low-income families in the region, extends the housing vouchers to Dec. 31--nearly two years after the Jan. 17, 1994, earthquake that became the nation’s second-costliest natural disaster.

“We didn’t have the money to find a new place right now and we didn’t know what we were going to do,” said retiree Carol Hickerson of North Hollywood, who was just weeks away from losing the small, two-bedroom apartment she and her husband, Wyeth, share with their 8-year-old grandson.

The vouchers, originally scheduled to expire in mid-July, were issued to families whose annual income average, for instance, was little more than $25,000 for four people. The families pay about 30% of their rent, with HUD picking up the rest.

Many of those receiving the special Section 8 certificates are waiting for their homes--deemed uninhabitable after the earthquake--to be repaired. Others whose houses or apartments have been condemned are still searching for affordable housing.

Steve Renahan, director of Section 8 for Los Angeles, said the subsidies were extended because not all the $200 million in federal funds allocated has been spent, and because the continuing need of earthquake victims was obvious.

“The majority of the families didn’t have any options,” Renahan said. “The only option they had was to double-up or triple-up with friends or families or be homeless.”

After talking to a number of the families, Renahan said he realized many of them needed more time to save the money necessary to move.

Jeff Farber, director of social services for the Los Angeles Family Housing Corp. in North Hollywood, a private agency that has provided counseling for some of the displaced families, said without the extension many would be unable to find decent, affordable housing.

“It gives people the additional time to save money, repair credit or look for housing,” he said. “It’s a breath of relief.” Yet Farber said it may hinder the motivation to find housing on the part of some recipients.

“If you know you have to find a place by June 31, you will concentrate your efforts into looking for one.”

Through a $4-million HUD program called Mobility Plus, Farber’s agency has been working with earthquake victims receiving rent subsidies, teaching them how to negotiate with landlords and how to save for a housing deposit.

The Hickersons, who lost their Canoga Park condominium in the earthquake, said they were scrambling in recent weeks to scrape together money and find a reasonably priced apartment. Once they learned about the Mobility Plus program and heard the good news about the extension, they were overjoyed.

Just last week the couple learned they may qualify for a special program that helps low-income families purchase housing. Although Wyeth Hickerson’s early retirement pension as an auto worker is small, he and his wife now believe they may be able to save enough money for a down payment for a house where their grandson can play.

Others have also benefited tremendously from the reprieve.

“If it weren’t for HUD I would literally be homeless,” said Londa McDonald, who lost everything when her apartment in Sherman Oaks was destroyed in the earthquake. Through her subsidy, HUD pays all of her $515 rent now that she is unemployed and looking for work as a receptionist.

Though supportive of the extension, Farber added some final words of caution.

“Come Dec. 31 we will have a lot of people looking for limited housing,” he said. “And that may cause some problems.”