Parking Tax Revenue Would Pay For New Affordable Housing Units, Under URA Plan
The Pittsburgh Urban Redevelopment Authority unanimously approved a measure Thursday to help fund new affordable housing units near PPG Paints Arena.
The money would come from parking taxes generated at the new parking lot at City’s Edge, a $48 million mixed-use, mixed-income development in Uptown.
The URA’s plan is to divert 75 percent of the incremental, or future increases in parking taxes generated from the lot.
URA Director of Economic Development Susheela Nemani-Stanger said that could amount to more than $6.8 million over 19 years, which would pay down an upfront loan for the affordable housing component of the project. Of City’s Edge's proposed 106 housing units, 74 are expected to be "affordable." These would be designated for households earning 20 to 60 percent of the area median income.
The URA developed its parking tax diversion guidelines in 2016.
“I think this is a creative way that this board and staff has utilized a parking tax diversion, not just to subsidize and fill a gap for market rate development, which has been done in the past, but to make sure this type of investment is used to advance social equity in the city,” said URA board chair Kevin Acklin.
The remainder of the lot’s generated parking taxes would go to the city. The plan goes next to City Council for approval.