The Urban Redevelopment Authority on Thursday approved an additional $750,000 loan from their Rental Gap Program to help finance the conversion of downtown office space into 93 new one-bedroom affordable apartments for senior citizens.
Back in April, the URA approved more than $4 million in loans to fund the development of 100 First Avenue in Downtown Pittsburgh, called the First and Market project. The 11-story vacant office building is set to be transformed into affordable housing for seniors. Developer Beacon Communities is leading the project, which is expected to cost nearly $41 million.
“When we're talking about repurposing what would otherwise become vacant buildings downtown, it would improve that vibrancy,” said Kyle Chintalapalli, board chair of the URA. “This is an opportunity that's giving you senior housing to really build downtown into that multi-generational, true, 18-hour neighborhood.”
The conversion effort is a push toward addressing Pittsburgh’s ongoing need for low-cost housing.
Every unit in the building will go to someone with a Section 8 voucher.
Developers plan to make the building completely electric, hoping to max out their sustainability scores for available tax credits. Beyond the 93 affordable units, the building will have a community room, building management on-site, laundry facilities, an exercise room and support services for residents to help connect them to food, health and financial resources in the community.
The URA also approved $25 million in Multifamily Financing Bonds to finance the project. These bonds are tax-exempt and designed to help build and rehabilitate affordable rental housing developments. They expect to raise the remainder of the needed funding through equity in various tax credits, like the Low Income Housing Tax Credits offered by the Pennsylvania Housing Financing Authority.
Construction is expected to begin in November and take about 18 months.
