Norwin OKs housing authority deal for payments in lieu of taxes

The Norwin School Board put its stamp of approval on a deal to split about $11,150 a year with the taxing bodies of Irwin and the county for the next 40 years in return for not challenging the non-profit charitable status of the developer of a proposed 50-unit complex for senior citizens.

The agreement with the Westmoreland County Housing Authority that school board approved on Monday is for the Grand View Senior Residences, which is to be built on 5-to-8 acres of property the authority owns off Laurel Avenue and behind the Norwin Public Library on Caruthers Lane. The agreement with the housing authority bases the annual payment on an assessed value of $233 per unit.

Norwin would receive the lions share of the annual payments because it levies a higher real estate millage — 84.8 mills during this school year — than Irwin’s 23 mills or the county’s 21.49 mills for this year. Both Irwin Council and the Westmoreland County commissioners previously approved the agreement.

Some school board members last week questioned the proposed agreement with the county housing authority. Solicitor Russell Lucas said it could seek to renegotiate the agreement or it could file a lawsuit in Westmoreland County court to challenge the tax-exempt status of the project, which is estimated to cost $12 million. It could be a costly appeal because the school district could lose in court, pay legal fees and not get annual payments.

Michael Washowich, housing authority executive director, pointed out that the school district, Irwin Borough and the county currently are not receiving any tax revenue from the land because the authority is tax exempt. The housing project for senior citizens also could be tax exempt, Washowich said.

Of the 50 units proposed for the site for income-eligible residents, Washowich said that eight would be reserved for veterans. Those living in the housing complex would have access to a full range of social services, Washowich said.

Lucien Bove, Irwin Borough engineer, said he has seen only a preliminary sketch of the project, but not a detailed site plan.

The authority intends to apply to the Pennsylvania Housing Finance Agency for financing. If the authority can get the financing, Washowich said he hopes that construction will begin next year.

“We think it will be a great opportunity for the Irwin area,” Washowich said.