Pittsburgh Land Bank approves $10M spending plan for covid relief money

The Pittsburgh Land Bank’s board voted unanimously Friday to approve a plan to spend $10 million in American Rescue Plan funding — despite the fact Mayor Ed Gainey has said he wants to take $3 million of that money to create a food justice fund.

The Land Bank’s plan calls for using $10 million in ARPA money over four years, Land Bank manager Sally Stadelman said in a presentation to the board.

“Our Land Bank is here to support and increase the supply of affordable housing and to reduce the spread of urban blight in the city of Pittsburgh,” Stadelman said, adding that the federal covid relief funding would help the group expand on those efforts.

More than $5 million in ARPA money would be spent on property acquisition, holding costs and title clearance for properties the Land Bank would buy and resell.

Stadelman said she is hoping the Land Bank could buy and then sell more than 650 properties over that four-year span.

The Land Bank’s spending plan also includes nearly $3 million to complete necessary work on properties purchased through the Land Bank. Another $1 million is earmarked for staff and consultants.

The board unanimously approved the $10 million ARPA spending plan Friday. City Councilman Ricky Burgess, the board chair, was not present for the vote.

Land Bank officials did not discuss how losing $3 million in ARPA funding would impact their spending plan or their ability to move ahead with their work.

Related:

• Pittsburgh City Council considers proposal to shift $3M in Land Bank funding to new food justice fund

• Gainey touts investments in infrastructure, public safety in Pittsburgh budget

• Nearly two-thirds of Pittsburgh's federal stimulus money remains unspent, unobligated

Gainey has said he would give the Land Bank only $7 million, freeing up $3 million to establish a food justice fund. The food justice fund, an idea spearheaded by City Councilwoman Deb Gross, received widespread support from council members and food justice advocates throughout the city.

“We are firmly committed to the $3 million (for the food justice initiative),” said Maria Montaño, a spokeswoman for the mayor. “It is our perspective that, because of the limited timeframe for the ARPA dollars to be used, we’re not sure if the Land Bank would be able to spend all $10 million.”

ARPA money must be allocated by the end of 2024 and spent by the end of 2026. The city has yet to spend about two-thirds of its ARPA allocation.

Some council members have voiced concerns about using cash initially earmarked for the Land Bank to fund the food justice initiative. Councilmen R. Daniel Lavelle and Bobby Wilson — who, along with Burgess, sit on both the Land Bank board and City Council — have suggested that city officials should look for other ways to fund the food justice initiative.

Montaño said there was “back and forth with council” during the budget hearings, but said the administration still intends to move ahead with its plan to take $3 million from the Land Bank to start the food justice fund.

City Council is expected to vote on the proposed budget Dec. 19.