Pittsburgh's Urban Redevelopment Authority to launch housing programs for lower-income residents

Pittsburgh’s Urban Redevelopment Authority has announced a pair of new programs that it said will help lower-income residents.

One of the programs will help lower-income residents buy houses, while the other will convert unused Downtown office space into affordable housing. Both programs will launch at the end of the month.

City, county and state officials have teamed up on the Downtown residential conversion pilot program, which aims to revitalize Downtown office buildings that have sat largely empty since the covid-19 pandemic by turning them into much-needed affordable housing units.

The project has $9 million in funding, including $2.1 million in American Rescue Plan money from the city.

The URA in October estimated there is more than 11.3 million square feet of vacant office space across 150 buildings in Downtown Pittsburgh.

“It looks to create new affordable housing in Pittsburgh’s central business district by converting underutilized office space to residential uses,” said Evan Miller, the URA’s director of housing. “Under the current climate in the city, many who work Downtown cannot afford to live in the neighborhood, or they struggle to find affordable units.”

Financing will be provided to building owners or developers who are converting the space to housing that is available for families making no more than 80% of the area median income, which ranges from $53,000 for an individual to $75,850 for a family of four to more than $100,000 for a family of eight.

Building owners and developers will be able to receive between $60,000 and $100,000 per housing unit, depending on how affordable it will be, Miller said.

Future projects funded through the program will come to the URA board for approval, Miller said.

Pittsburgh City Council last month approved legislation that will streamline the process of converting the office spaces into housing. The measure will allow proposed residential projects in the Golden Triangle district to move ahead without Planning Commission review and approval, which previously had been required.

Building owners and developers will be able to apply for funding through the program beginning Jan. 31.

Related:

• Pittsburgh streamlines process to convert unused Downtown office space into housing

• URA moves ahead with project to convert Downtown office space into housing

• OwnPGH program to offer low-income, first-time homebuyers up to $90K in help

The URA’s OwnPGH program also will open for applications Jan. 31.

The program, in partnership with the Housing Authority of the City of Pittsburgh, will provide up to $90,000 in grants and forgivable loans to qualified first-time homebuyers looking to buy homes in Pittsburgh, said Alicia Majors, home ownership manager in the URA’s consumer lending team.

Applicants must prequalify for a primary mortgage loan with Dollar Savings Bank, First Commonwealth Bank or Slovak Savings Bank.

“The program is designed to reduce the cost of home purchasing for home buyers at or below 80% of the area median income,” Majors said.

The program will offer grants of up to $50,000 for eligible homeowners. It will be funded with $15 million in American Rescue Plan Act money.

The city’s housing authority will offer a second, deferred mortgage of up to $40,000. It would require regular payment from the borrower, carry a 0% interest rate and be forgiven at a rate of 10% of the original balance each year.

Homeowners participating in the program for 10 years or more will have their second mortgages forgiven completely.

The URA in October laid out all of the program’s guidelines, including a debt-to-income ratio of no more than 43%.