Rewards in Store for Residents Who Stay By Ronald Drenger News last month that two new financial relief packages were in the works cheered most downtown residents, who will be eligible to receive grants of up to $13,000 over two years. But some residents criticized the size and scope of the packages, or said the authorities should spend money environmentally testing and cleaning downtown buildings before trying to entice people to live in them. The Lower Manhattan Development Corporation (LMDC), the agency that oversees the rebuilding of Lower Manhattan, gave preliminary approval on Feb. 21 to a $200 million grant program for downtown residents or new arrivals who commit to staying at least two years. The aid, the plan states, is "to offset the perceived and real disadvantages of a Lower Manhattan location." Those who rent or own apartments south of Chambers Street and west of Broadway would get 30 percent of their rent or mortgage and maintenance payments, up to $12,000 over two years, with a minimum of $4,000. Renters and owners elsewhere below Canal Street would receive up to $6,000, with a $2,000 minimum. Existing tenants whose leases end before Aug. 31, 2003 would have to renew for at least two years to be eligible. Those who were living downtown on Sept. 11 would get a $1,000 bonus. The proposal is awaiting final approval and the LMDC is accepting public comments through March 13. (The proposal can be downloaded from the Empire State Development Corporation website.) No application procedure is in place yet. Some who live east of Broadway, just a few blocks from Ground Zero, said that they should be included in the "immediate impact zone" and eligible for higher grants. Community Board 1 intends to request that the eastern boundary of the zone be extended to Nassau Street. Battery Park City (BPC) renters and owners, and those who move there, will also benefit from a $15.6 million disaster relief package announced by the Battery Park City Authority on Feb. 12. They will receive checks averaging $1,840 for rental units and $2,850 for condominiums.   At the same time, the Battery Park City Authority notified 2,191 condominium owners that it intends to collect the approximately $13 million in ground rents and payments in lieu of taxes that owners have withheld since Sept. 11, and may pursue legal action. The owners in 10 of BPC’s 11 condos have demanded payment reductions because of the decrease in the value of their homes. Eugene Glazer, chairman of the Battery Park City Homeowners Coalition, said the Authority’s relief offer, combined with the warning, was "a little carrot and a big stick." "The amount of money involved is very small compared to what most people would perceive to be very substantial damage to the community," he said. Some tenant leaders worry that landlords will simply raise rents and absorb benefits intended for residents. Others asserted that the government and the Battery Park City Authority were trying to bribe people to live downtown while neglecting widespread concerns that World Trade Center dust inside buildings posed a serious health threat. "Our number one issue is testing and cleanup, the residents’ health and safety," said Sudhir Jain, head of the Lower Manhattan Tenants Coalition.