Pittsburgh City Council approved a plan Tuesday to provide $62.5 million to the Urban Redevelopment Authority to help fund affordable housing programs.
This comes despite concerns from several council members about the financial impact on the city and the URA’s lack of a spending plan.
“All of us have some little bit of apprehension,” Council President Theresa Kail-Smith, D-West End, said ahead of the final vote.
The city will provide the URA with $2.5 million a year for 25 years, or a total of $62.5 million.
The authority said it will use the money to pay off a bond that officials will take out to fund affordable housing efforts over the next three years. Officials estimate the bond will bring in between $25 million and $40 million, but they won’t know the exact number until they take it to market.
Mayor Ed Gainey’s administration and URA officials have offered no detailed plan regarding how they plan to spend the money. Although City Council approved the $62.5 million allocation, they have no say in how URA uses the money they receive from the bond. Those allocations will be approved by the appointed URA board.
Councilman Anthony Coghill, D-Beechview, said he voted against the measure because of that ambiguity and lack of council control. He said he understands the need for affordable housing, but felt this was a bad business decision.
“We don’t know if that principal amount is going to be $25 million or $40 million and we don’t have a say-so in that. The fact that it’s taken out of our hands and the fact that the disbursement of this money once we do secure it (is out of our hands) is why I can’t support it today,” he said.
Despite reservations, Kail-Smith said she was more concerned about what would happen to people struggling to find affordable housing if the city didn’t make the investment.
Several other members also had voiced concerns during prior discussions about the lack of a clear spending plan. An amendment added to the bill last week will require the URA to present City Council with a spending plan within 90 days of receiving the funding. Council will not be able to vote on the plan; the amendment is meant merely to inform council of how the URA will use the cash.
Councilman Ricky Burgess, D-Point Breeze, said funding affordable housing efforts was a “moral imperative” and called on the city to invest even more over the next decade.
Councilman R. Daniel Lavelle, D-Hill District, who sits on the URA board, has pointed out that the expense is less than half of 1% of the city budget.
Coghill was the only member to vote against the measure Tuesday.
Related:
• Pittsburgh City Council poised to vote on $62.5M plan to help fund URA housing programs• Pittsburgh looks to issue bond for affordable housing efforts
• Some Pittsburgh City Council members question URA's city-funded affordable housing plan
