Develop PGH Bulletins: Affordable Housing Fund May Boost For-Sale Allocations

Pittsburgh PA

07 September, 2021

5:48 PM

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By Rich Lord, Public Source September 2, 2021 Develop PGH Bulletins updates you on the Pittsburgh region's economy. Check back frequently, sign up for the Develop PGH newsletter and email [email protected] with questions, tips or story ideas. 9/2/21: The public has until month's end to comment on affordable housing plan The City of Pittsburgh may allocate more deed transfer tax dollars to an affordable home purchasing program next year than this year, under a draft plan on which the public can soon comment. The City of Pittsburgh may allocate more deed transfer tax dollars to an affordable home purchasing program next year than this year, under a draft plan on which the public can soon comment. The Housing Opportunity Fund Advisory Board reviewed and discussed the draft allocation of the $10 million in city money that it expects to oversee next year. The HOFAB gets an annual share of the deed transfer tax, and the Urban Redevelopment Authority administers the programs it funds. Urban Redevelopment Authority Housing Policy Manager Evan Miller presents a draft 2022 affordable housing funding plan to the Housing Opportunity Fund Advisory Board at a virtual meeting on Sept. 2, 2021. (Screenshot)The most notable proposed changes from this year's allocations: A $215,000 increase for the For-Sale Development Program, which helps developers and community groups to finance the construction or renovation of new houses to be sold to families with modest incomesA dip of nearly $1 million in new allocations to the Rental Gap Program, which aims to fill holes in the financing plans of apartment building developers – a program that this year got an extra $750,000 boost from a special infusion of funds from Pittsburgh City Council, and that remains flush with nearly $7 million in unallocated funds in its coffersInclusion of $425,000 for a new Small Landlord Fund that aims to help mom-and-pop landlords to make improvements to rental homesA drop of $550,000 in new allocations to the Legal Assistance Program, which was created to pay for lawyers to help people facing eviction, but which has a leftover balance of $800,000 from this year's allocation.HOFAB members argued for keeping the flexible Demonstration Dollars allocation, which can be spent on novel programs or redirected as needed. Some cited the recent U.S. Supreme Court decision nixing the Centers for Disease Control and Prevention's pandemic-related curbs on evictions. "It worries me that we're going to have this dam breaking and we're not going to be able to deal with that effectively," said board member Mark Masterson. Last month landlords filed 561 cases seeking to evict tenants in Allegheny County, the highest level since September, when previous restrictions briefly expired before the CDC stepped in. Eviction cases edge up in Allegheny CountyThe draft allocation plan was crafted by URA staff. The staff used results from a survey of 488 people, input from the Housing Opportunity Fund Advisory Board members and data on the available dollars and demand trends for each program. Staff expects to post the draft on the URA website in coming days, along with a form through which the public can submit feedback. The advisory board could vote on the plan Oct. 7, then send it to the URA board for its approval the following week. 9/1/21: Fee on deeds and mortgages to cover most of $3.2 million anti-blight packageAllegheny County will steer nearly $2 million raised through a new fee to 30 communities to fund the demolition of 100 derelict buildings. The round of funding is the first under an ordinance passed last year, which placed a $15 fee on the filing of deeds and mortgages, strictly to pay for demolition of blighted buildings. Getting the most buildings demolished under the program are McKeesport and Wilkinsburg, with 10 each, followed by the Steel Rivers Council of Governments (which serves 19 Mon Valley municipalities) with 8, Braddock with 7, and Brackenridge and Pittsburgh with 5 each. "I'm delighted to see that we were able to provide funding to these municipalities and support the demolition of 100 structures," said Allegheny County Executive Rich Fitzgerald, in a statement provided to PublicSource. He thanked County Councilman Bob Macey, of West Mifflin, who proposed the fee ordinance. The county in March invited municipalities and councils of government (COGs) to apply for the funds. It got 60 applications to demolish some 375 buildings at a cost of nearly $7.7 million — far more than the fee has brought in so far. "Not having seen the grant awards, my hope is that these dollars would be allocated in the places of need," said An Lewis, executive director of the Steel Rivers COG, who was a key advocate for the fee. "Those communities can't take care of these issues without support, period. They simply cannot." The $1,935,076 of deed-and-mortgage-fee revenue that the county will distribute amounts to 86% of the funds collected through the fee. The rest is available for emergency demolitions or the next round of funding. The county is, however, going to pay for 87 more demolitions in 15 other municipalities using $1.2 million from other funding sources. "There has been a tremendous need for blight remediation throughout the county, and this program has allowed us to support the work of our local municipalities and others to improve neighborhood conditions," said Lance Chimka, the county's development director, in the statement. The county gave preference to applications that targeted clusters of unsound buildings, especially those that present a safety hazard, are slated for redevelopment or are part of planning efforts. The county is also requiring that the contractors conducting the demolitions repeatedly wet down the structures to reduce the drift of any dust containing lead. The funded demolitions won't come close to addressing all of the blighted buildings in the county. "I think we have to have a larger conversation about what comes next," said Lewis. "We have got to get these buildings down, because they are so detrimental in every way — psychologically, physiologically and economically." August recap:News from the City Planning Commission, Urban Redevelopment Authority, Housing Authority of the City of Pittsburgh and more Dispute in Downtown's Gateway Towers divides condo residents 2020 Census: Pittsburgh's slight decline came with 'massive' demographic shifts in 2010s Hundreds of violations, few penalties: Allegheny County's health enforcers frequently inspected — but rarely fined — two McKeesport properties Develop PGH archivesFacing roaches, rodents, leaks and balky heat and fire alarm systems, fed-up tenants of PNC Bank's McKeesport complexes demand change PNC Bank pledges to address 'completely unacceptable' conditions as officials demand changes at its McKeesport properties Communal land and ownership — A conversation with Pittsburgh affordable housing advocates Soaring rents, waning options: For tenants on tight budgets, the North Hills isn't a friendly place July development coverage Rich Lord is PublicSource's economic development reporter. He can be reached at [email protected] or on Twitter @richelord. Develop PGH has been made possible with funding from The Heinz Endowments. This article was produced by PublicSource.org, a nonprofit news organization serving the Pittsburgh region. PublicSource tells stories for a better Pittsburgh. Sign up for their free email newsletters at publicsource.org/newsletters.