With $31.6M in hand from controversial bond issue, URA details plans for affordable housing in Pittsburgh

Months after Pittsburgh City Council, operating on limited information, approved a $31.6 million bond issue for affordable housing, members finally got some details Wednesday about how the money will be spent by the Urban Redevelopment Authority.

The head of the URA, which issued the bonds, sent council information showing that the authority plans to prioritize rental housing for the city’s lowest-income residents.

Officials estimated the money raised through the bond issue would help fund about 1,000 housing units over the next three years.

Specifics about which projects might receive funding are yet to be determined.

But the money will generally be used for renovation, acquisition, and operation of affordable housing, as well as for the conversion of Downtown office space. It will also finance loans to nonprofit developers.

Receipt of the spending plan fulfilled a requirement that council had placed on the URA before approving the bond.

Council, however, has no say in what the URA does with the money.

Some council members last summer expressed reservations about the bond, which will be backed by annual $2.5 million payments by the city for the next 25 years.

The city’s total expected outlay — $62.5 million — left members like Anthony Coghill, D-Beechview, gritting their teeth.

Coghill, a vocal proponent of affordable housing who voted against the bond measure, said building any new units is a good thing, but he doesn’t think spending so much for so little is wise.

“I think we could use [the money] more creatively and more productively and get more bang for our buck,” Coghill said Wednesday, adding he felt the bond was a bad deal.

Half the money raised by the bond issue is expected to fund housing for individuals making up to $21,100 a year and families of eight earning up to $50,560 annually.

The rest will be distributed to projects targeting people making up to $56,250 or large families with income up to $106,000.

A 2016 report from Pittsburgh’s Affordable Housing Task Force showed an urgent need for more than 17,000 units of affordable housing.

That year, the URA said, there were only 34 housing units available for every 100 families within certain income guidelines who were looking for affordable housing.

In a statement Wednesday, Mayor Ed Gainey lauded the URA plan, calling it a “promise fulfilled” to ensure safe, affordable housing for all Pittsburghers.

“This initiative embodies our commitment to making good on that promise and creating a city where everyone can thrive,” Gainey said.

The URA plans to prioritize projects that: create long-term affordable housing; leverage additional financing; provide units with three or more bedrooms; and offer creative home ownership models, like limited equity housing cooperatives.

City Council President R. Daniel Lavelle, who is on the URA board, said the bond will allow the authority and its partners to “work towards a future where affordable housing is not just a goal but a reality for all Pittsburgh residents.”

The authority’s plan also outlined a goal of ensuring at least 10% of housing units are accessible for people with mobility problems and at least 4% are accessible for people with sensory impairments.

Related:

• $31.6M bond will support Pittsburgh affordable housing initiatives

• Pittsburgh's URA to receive $62.5M from city to help fund housing programs

• Pittsburgh looks to issue bond for affordable housing efforts