Wealthy may get aid in post-Sept. 11 plan

NEW YORK -- A housing aid proposal to help terror-damaged lower Manhattan is raising eyebrows because families with six-figure incomes would qualify for grants normally intended for poor and middle-class people.

The $277 million program, which awaits federal approval, would provide grants of up to $14,500 for lower Manhattan residents who promise to stay for at least two years. The plan would cover rents and mortgages for people who already live downtown or decide to move there.

But because lower Manhattan includes wealthy neighborhoods where apartments can sell for $2 million and rent for $5,000 a month, the idea has raised questions since it was proposed two months ago.

"I don't think that makes sense," said Margaret Hughes, executive director of a tenant advocacy group on Manhattan's less-affluent Lower East Side. "It makes more sense to put money into workforce development programs and to create affordable housing."

Hughes said she does not oppose grants for people who lived downtown on Sept. 11 -- many of whom were forced from their homes by the terrorist attacks -- but she questions whether people who move there in the future should qualify.

The Lower Manhattan Development Corp., the agency overseeing downtown rebuilding, closed the public comment period this week and will forward the plan to the U.S. Department of Housing and Urban Development within days.

Most of the more than 1,000 people who filed written comments were supportive, but some criticized the aid for affluent newcomers.

Federal assistance

The money is coming from the federal Community Development Block Grant program, which normally serves low- and moderate-income people. In New York City, HUD guidelines say, a moderate-income family of four is one that earns less than $50,200 a year.

Few residents of lower Manhattan would qualify under such rules. Eleven percent of downtown residents report household incomes under $60,000, according to a report prepared for the Alliance for Downtown New York. Twenty-four percent said their incomes topped $210,000.

The income guidelines were waived for the lower Manhattan program, in part because it serves broader downtown renewal goals.

"The program is designed to stabilize and strengthen lower Manhattan and provide financial assistance to retain and attract residents," development agency President Lou Tomson said.

Thousands of lower Manhattan residents fled after the attack, though many have already been replaced by newcomers.

Some of the richest downtown residents probably will not apply for the grants.