Newport won’t lose federal grant

June Casagrande

NEWPORT BEACH -- City officials are breathing a sigh of relief at the

news that they will probably get community development block grant

dollars from the federal government next year after all.

In February, Newport Beach received word that a handful of the

nation’s richest cities would probably lose out on some of the grant

money, which is awarded to improve low-income areas.

President Bush’s proposed budget included a plan to nix the richest

cities from the list of recipients. Under his original plan, Newport

Beach, which receives about $500,000 a year from the grant, would have

seen that money cut in half.

But, as Assistant City Manager Sharon Wood has reported to City

Council members, a congressional plan to modify the president’s spending

plan means the city probably won’t see any cuts.

“We now anticipate that we will receive full funding in our community

development block grants,” said Dennis Danner, the city’s administrative

services director. “This is good news.”The city has been counting on the

grant money to pay for improvements in Balboa Village. The first phase of

a three-phase, $8-million renovation was completed recently. But the

budget for the last two phases of renovations relies on $2.4 million from

community development block grants in the coming years.

The city has qualified for an advance on the money from the federal

government through a loan program backed by block grant dollars. But it

was unclear what would happen if the grants to the city were cut after

the city received the loan.

“This loan was very important to us,” Mayor Tod Ridgeway said.

In the past, community development block grants have helped to pay for

apartments at 1530 and 1538 Placenta Ave., as well as Newport Seacrest,

Newport Seashore and Newport Seaside apartments.