Stimulus money will help Los Angeles in a number of areas including: transportation (including street re-surfacing), public housing and energy efficiency. The three areas will receive the following:

Transportation $118 million

Energy efficiency and conservation $ 37 million

Public capital housing fund $ 25.5 million

Private companies who know how to work with their city, county or state offices already on infrastructure projects or public assistance seem like they’ll be the ones most likely to benefit from stimulus money – officially known as the American Recovery and Reinvestment Act (ARRA). Los Angeles will “touch” at least 17 different grants and programs out of the 119 different accounts funded by the $ 787 billion simulus bill.

The money coming to Los Angeles was gone over in detail by LA’s deputy mayor Diego Alvarez who spoke to a luncheon of the Los Angeles Chamber of Commerce, July 15, to review the money released to date and how it’s being allocated.

Alvarez also said that the State of California could access some of the money before it reaches Los Angeles in order to help with its budgetary needs.

Other areas of funding for Los Angeles include: unemployment insurance, food stamps, and subsidized COBRA payments. Alvarez said that since LA has a disproportionate amount of both the poor and unemployed then these programs are good for LA, a city that the chamber has said does not promote a business-friendly climate.

Consultant Larry Kosmont, president and CEO of Kosmont Companies, spoke to the same gathering and described how government officials at all levels were struggling with sorting through the funding. He cautioned that private businesses will also find it challenging. Kosmont Companies offers real estate and economic advisory consulting in addition to assisting cities with revitalization and development projects.

In his presentation, he said the private sector may benefit from Build America Bonds (BAB) with more than $ 150 billion of BABs projected to be issued by the end of 2010 and Recovery Zone Bonds (RZB).

The RZBs will allow for the “acquisition of property within a recovery zone for the use of a ‘qualified business’.” A qualified business is defined to include any trade or business except residential rental facilities or other “bad projects” such as golf courses, massage parlors and gambling facilities.

Kosmont pointed out that financing with the RZBs can include large manufacturing plants, distribution centers, hotels and research parks. Businesses interested in accessing any AARA funds should contact their local city hall or state office.

Both Kosmont and Alvarez agreed that the public must perceive benefits from the AARA funds or people will lose the political will for a second round. Follow the resource links to learn more.