Pittsburgh’s Affordable Housing Bond Set at $25-40 Million, Lower Than Anticipated

The City of Pittsburgh and the Urban Redevelopment Authority are gearing up to issue Pittsburgh’s Affordable housing bond this summer in an effort to raise additional funds for affordable housing preservation and creation. However, the anticipated funding amount of $25 to $40 million pales in comparison to the earlier proposals of $100 million or even $60 million.

Pittsburgh’s Affordable Housing Bond can still have a meaningful impact. (Photo: Pittsburgh-Post Gazette)

Pittsburgh’s Affordable Housing Bond

In a city where affordable housing is in high demand, with an estimated shortfall of 17,000 units nearly a decade ago and exacerbated by the pandemic, the allocated funds may seem insufficient. Despite this, Councilor Daniel Lavelle believes that Pittsburgh’s Affordable Housing Bond can still have a meaningful impact, considering the urgent need and the limited resources currently available.

According to a published article, Lavelle acknowledges that addressing the housing crisis is a complex and expensive task, far beyond what the government alone can accomplish. He calls for partnerships with corporate entities, private investors, and large nonprofit organizations, suggesting that such collaborations could potentially triple the impact of Pittsburgh’s Affordable housing bond.

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Pittsburgh’s Affordable Housing Bond Falls Short of the Desired Amount

While Pittsburgh’s Affordable housing bond falls short of the desired amount, the city has already allocated $10 million annually to the Housing Opportunity Fund in its budget.  An additional $2.5 million was recently added to support Pittsburgh’s Affordable housing bond issue, although it involves taking on a loan that will require approximately $60 million in repayments over the next 25 years.

Although the bonds are expected to generate less than two-thirds of the required investment amount, Emily Brock, from the Government Finance Officers Association, explains that acquiring the funds now acts as a safeguard against potentially higher borrowing costs in the future.

Councilor Ricky Burgess commends the administration for moving forward with the bond idea, expressing hope for future borrowings that could reach the necessary $60 to $100 million to jumpstart low-income and affordable housing initiatives in the city.

Looking ahead, Jake Pawlak, the deputy mayor, and director of the city’s office of management and budget, plans to issue at least two rounds of bond financing.  Despite the financial aspects of the bond issue, the focus remains on the people. The URA board is set to vote on authorizing the bond issuance at their upcoming meeting, and the city council must pass its own legislation to proceed with the plan.

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