After Pittsburgh City Council approved a $31.6 million bond issue for affordable housing with limited information, they finally received details on Wednesday about how the money will be spent by the Urban Redevelopment Authority.
The URA head, which issued the bonds, provided council with information indicating that the authority intends to prioritize rental housing for the city’s lowest-income residents.
Officials anticipated that the money collected from the bond issue would support approximately 1,000 housing units in the next three years.
The specific projects that may receive funding have not been determined yet.
However, the funds will generally be allocated for the refurbishment, acquisition, and operation of affordable housing, as well as the conversion of Downtown office space. It will also finance loans to nonprofit developers.
The receipt of the spending plan met a requirement set by the council prior to approving the bond.
Nevertheless, the council does not have authority over how the URA uses the money.
Some council members expressed concerns about the bond last summer, which will be supported by the city with annual $2.5 million payments for the next 25 years.
The total expected city expenditure of $62.5 million was unsettling for members like Anthony Coghill, D-Beechview.
Coghill, a strong supporter of affordable housing who voted against the bond measure, mentioned that building new units is positive, but he believes spending such a large amount for a relatively small outcome is not wise.
Coghill said Wednesday that he thinks the money could be used in a more innovative and productive way to achieve better results, and he sees the bond as a poor investment.
Half of the money acquired from the bond issue is anticipated to finance housing for individuals earning up to $21,100 annually and families of eight making up to $50,560 per year.
The remainder will be allocated to projects targeting individuals earning up to $56,250 or large families with income up to $106,000.
A 2016 report from Pittsburgh’s Affordable Housing Task Force revealed a pressing need for over 17,000 units of affordable housing.
That year, the URA stated that there were only 34 housing units available for every 100 families within certain income criteria seeking affordable housing.
In a statement on Wednesday, Mayor Ed Gainey praised the URA plan, describing it as a “commitment fulfilled” to ensure safe, affordable housing for all Pittsburgh residents.
Gainey stated, “This initiative represents our dedication to fulfilling that commitment and developing a city where everyone can prosper.”
The URA intends to prioritize projects that: create long-term affordable housing; secure additional financing; offer units with three or more bedrooms; and provide innovative homeownership models, such as limited equity housing cooperatives.
City Council President R. Daniel Lavelle, who serves on the URA board, stated that the bond will enable the authority and its partners to “strive for a future where affordable housing is not just a goal but a reality for all Pittsburgh residents.”
The authority’s plan also laid out a target to make sure at least 10% of housing units are available for people with mobility issues and at least 4% are available for people with sensory impairments.
Related:
• $31.6M bond will help Pittsburgh's affordable housing initiatives
• Pittsburgh's URA will get $62.5M from the city to assist in funding housing programs
• Pittsburgh plans to issue bond for efforts to provide affordable housing
