Pittsburgh Dedicates $10M to Expand Affordable Housing Efforts

The Pittsburgh City Council has recently greenlit a substantial $10 million budget allocation for the Housing Opportunity Fund, a key trust fund dedicated to bolstering affordable housing programs within the city. This decision underscores the city’s commitment to addressing housing affordability, a pressing issue for many residents.

Councilman Bruce Kraus, representing the South Side, indicated that this funding amount for 2024 might undergo adjustments in the upcoming weeks as the City Council works on finalizing the overall city budget. This flexibility allows for responsive adjustments based on evolving city needs and priorities.

Established in 2016, the Housing Opportunity Fund has consistently played a pivotal role in supporting affordable housing initiatives. Notably, it also received a similar $10 million allocation in the current year, demonstrating the city’s ongoing dedication to this cause. The approved spending plan, which received the City Council’s nod on Tuesday, strategically allocates $2 million to the Urban Redevelopment Authority’s (URA) Rental Gap Program. This program is instrumental in providing loan assistance to nonprofit developers who are actively working on creating and preserving affordable housing units. A significant portion of this fund, amounting to $1.75 million, is earmarked specifically for housing projects aimed at individuals earning no more than 30% of the area’s median income. The remaining funds are allocated to those earning up to 50% of the median income.

The URA defines the area median income as ranging from $70,300 for an individual to $132,600 for a household comprising eight members. This range helps tailor the housing assistance to the varied economic backgrounds of Pittsburgh residents. Moreover, the fund dedicates over $3 million to the Homeowner Assistance Program. This program is a boon for eligible low-income homeowners, offering up to $35,000 in financial aid for home improvements, thereby enhancing living standards and property values. A significant $1.4 million of the budget is allocated to a program providing legal assistance for housing-related issues. This includes services like title processing, foreclosure protection, and mediation for renters, ensuring legal support is accessible for those in need. In addition to these allocations, $850,000 is set aside for housing stabilization efforts. This includes crucial support for rent, mortgage, and utility payments for individuals earning up to half of the area median income, providing a safety net for those in precarious financial situations.

The URA’s initiative for down payment and closing cost assistance is slated to receive $700,000, further easing the path to homeownership for many. Additionally, initiatives for the development of for-sale housing are allocated $650,000, promoting homeownership opportunities. However, the 2024 budget does not include funding for the Small Landlord Fund, which received $400,000 in the current year. This program is designed to assist landlords who manage up to 10 units in either preserving existing affordable housing or converting market-rate or vacant properties into affordable units. The decision to exclude additional funding for the next year is based on the observation that most of the funds allocated for the current year have not been fully utilized.

In summary, the Pittsburgh City Council’s approval of the $10 million budget for the Housing Opportunity Fund reflects a comprehensive and strategic approach to tackling the challenge of affordable housing in the city. Through a variety of programs and initiatives, the fund aims to make a significant impact in the lives of Pittsburgh residents, particularly those in need of affordable housing solutions.