More than one-third of discretionary funds dispensed by the Lower Manhattan Development Corporation to rebuild downtown after the September 11, 2001, terrorist attacks have gone to organizations linked to agency board members, a new report shows.

The report, issued by Good Jobs New York, a fiscal watchdog, charges the LMDC has favored big business over the priorities of the downtown community by giving 34% of its $1.3 billion in rebuilding grants to groups whose executives serve on the LMDC board.

The LMDC disputed the numbers, saying the report inaccurately broke down discretionary funding and failed to take into account roughly $630 million the agency gave to businesses and residents across all income levels.

The report does not take issue with roughly $2.2 billion in so-called federal recovery money the agency issued to area businesses and residents as compensation for the attacks.

Some of the incidents highlighted in the report appeared in an article in The New York Sun in March, specifically, rebuilding grants given to organizations affiliated with LMDC board members Carl Weisbrod and Madelyn Wils.

The Alliance for Downtown, whose president is Mr. Weisbrod, has received over $4.8 million to improve streetscapes, create information kiosks, and run festivals, according to the report.

The report shows that the board gave $2.6 million to the Hudson River Park Trust, which counts Ms. Wils among its board members, and $3 million to the TriBeCa Film Festival – an affiliate of the TriBeCa Film Institute, whose president is Ms. Wils.

Neither Mr. Weisbrod nor Ms. Wils returned calls for comment.

Joanna Rose, a spokeswoman for the LMDC, said the conclusions drawn in the report are “too easy and not fair.”

“Given the deep commitment each and every board member has to Lower Manhattan, it is not surprising that many of the projects submitted for review have the involvement or interest of board members,” Ms. Rose said.

She added that board members affiliated with a particular project are not involved in the decision-making process or discussions relating to the project.

Good Jobs points out that Mr. Weisbrod and Ms. Wils recused themselves from voting on the funding, but surmises that the recusals would have made little difference given that the LMDC has unanimously approved every single vote on a grant proposal.

The report argues the 12-member LMDC board, which is appointed by the mayor and the governor, has a “business dominated composition” and called for four currently vacant slots to be filled with people more in tune with low- and moderate-income New Yorkers.

“A lot of the money has gone to issues that the board is concerned with,” said Bettina Damiani, director of Good Jobs. “The problem is, the board is a slice of what the Lower Manhattan economy encompasses. They need to broaden their outlook.”

Ms. Damiani challenged the LMDC to use a portion of the roughly $900 million it has left in community development building grants to fulfill a request by Mayor Bloomberg for $200 million for affordable housing in Lower Manhattan.

The LMDC has proposed allocating $50 million to affordable housing.

“Our immediate priority for the limited funds available is the World Trade Center site and the creation of a 21stcentury business district that will create long-term, good-paying jobs and ensure economic growth for Lower Manhattan for all income levels,” Ms. Rose said.

Mayoral spokeswoman Jennifer Falk said the administration is satisfied with the progress that is being made on affordable housing in Lower Manhattan and how the board has allocated funds.

Meanwhile, a new report from the Independent Budget Office said the Bush administration is well on the way to providing all the $20.5 billion it promised the city after the World Trade Center attacks.

An analysis by the Independent Budget Office found the city has received roughly half of the federal aid committed in the days after the September 11 attacks to help the city recover and rebuild.