$11M loan fund aims to preserve affordable housing in Pittsburgh

A new $11 million loan fund will aim to help developers retain affordable housing options in Pittsburgh.

The Henry L. Hillman Foundation and The Heinz Endowments are partnering with UPMC for You, a Medicaid-managed care plan, to create the fund. The funding will help developers buy existing multifamily housing units and retain them as affordable housing, the foundations said in a news release.

The program will focus on mixed-use residential buildings with at least 20 affordable housing units, as well as family and senior housing with at least 20 affordable units that are near schools, grocery stores and public transportation.

The Preserve Affordability Pittsburgh loans aim to preserve 1,200 affordable housing units across the city over the next decade. Working with Lansing, Mich.-based Cinnaire Lending, the loan fund is $11 million. Loan amounts will depend on individual developer proposals.

The foundations said the program has been in the works for about two years and developers will be able to obtain funding “at less cost than (they) would encounter if pursuing loans through traditional lending paths.”

“Our priority is to foster greater equity by stabilizing housing for residents of Allegheny County who are rent-burdened and housing insecure, which will lead to better health outcomes for everyone in our community,” UPMC for You President John Lovelace said.

The foundations said the rise in inflation and construction costs have made preserving or renovating existing affordable housing more cost-effective than building new units.

“Many underserved Pittsburgh communities have endured generations of discrimination and disinvestment,” Cinnaire CEO Mark McDaniel said. “Delivering vital funding to support the development of much-needed safe, affordable housing in these communities is a critical step in addressing this inequity.”

The loan pool is open to projects throughout Allegheny County, but will initially support work “in neighborhoods that have experienced historical disinvestment,” the foundations said.

“The Preserve Affordability Pittsburgh loan pool is timelier than ever as our region continues to see rising home costs, evictions and rates of homelessness throughout Allegheny County,” said Lauri K. Fink, senior program officer at the Henry L. Hillman Foundation.

The initiative “has the potential to help revive neighborhoods while also ensuring that their future includes affordable housing,” said Rob Stephany, senior program director of community economic development for the Heinz Endowments.

The program is currently accepting applications.