HUD to Fund Santa Clarita Project : Housing: The U.S. agency, in reversing an earlier decision, will provide $4.4 million for 64 units for low-income senior citizens.

A federal housing agency has reversed itself and will fund a Santa Clarita senior citizens housing project it had previously rejected on the grounds that the community is predominantly white, the grant recipient said late Friday.

The U.S. Department of Housing and Urban Development will give $4.4 million to Southern California Presbyterian Homes to build the 64-unit project on Avenida Rotella for low-income senior citizens, said Marc Hererra, housing director for the nonprofit organization.

Although there are about 1,400 impoverished senior citizens in the Santa Clarita Valley, HUD had rejected the project on the grounds that it would be built in a “racially isolated� neighborhood that is 93% white. Federal civil rights legislation requires HUD to promote integrated housing and prevent housing discrimination.

The rejection angered government officials, including Rep. Carlos Moorhead (R-Glendale), who wrote a letter asking HUD to reconsider.

Agency officials could not be reached for comment late Friday, but Hererra said he was told that the rejection was rescinded because racial heterogeneity was not explicitly listed as a criteria for obtaining the grant.

“It’s unbelievably good news,� Hererra said.

But he said he is concerned that future grants will be given only to build housing in racially diverse communities.

HUD officials have said that its scarce resources should be used in racially diverse neighborhoods. The agency has only enough money this year--$529 million--to fund about 9,400 units for low-income senior citizens nationwide, officials said.

The Presbyterian Homes project will house about 80 people drawn from among the 504 valley residents age 62 or older who earn less than $7,500 annually, Hererra said. Some units would also be available to the 936 local senior citizens who earn between $7,500 and $15,000 annually, he said.

Construction will not begin for a year or two because plans have to be drawn up and other arrangements made, Hererra said.