Title
Resolution authorizing the Mayor and the Director of the Department Finance to enter into a Cooperation Agreement or Agreements with the Urban Redevelopment Authority for the City to provide annual contributions of up to Two Million Five Hundred Thousand Dollars ($2,500,000) to support a 2023 issuance for affordable housing, at a sum not to exceed Sixty-Two Million Five Hundred Thousand Dollars ($62,500,000) over twenty-five years.
(Briefing held 6/20/23)
(Executive Session held 6/30/23)
Body
WHEREAS, one third of Pittsburgh residents spend more than 30% of their income on housing, which is considered cost-burdened; increasing the likelihood that these households may have difficulty paying for other necessities, such as food, transportation, or health care; and
WHEREAS, the City of Pittsburgh’s Affordable Housing Task Force, in their May 2016 Report, found there is a defined affordability gap of 17,241 units for households earning up to 50% of the city’s median household income; and
WHEREAS, this same report found a lack of affordable housing is most severe for those at the lowest income tiers: there are only 34 units of affordable and available housing per 100 households earning less than 30% of the Area Median Income; and
WHEREAS, the City of Pittsburgh has since established an affordable housing trust fund known as the Housing Opportunity Fund, pledging $10,000,000.00 annually starting in 2018 for the creation and preservation of affordable housing opportunities; and
WHEREAS, the City of Pittsburgh and the Urban Redevelopment Authority of the City of Pittsburgh desire to ensure investments made in the creation and preservation of affordable housing are consistent with community goals, result in lasting affordability, and increase the City’s tax base; and
WHEREAS, the City of Pittsburgh has found that funding pledged through the trust fund and other annual budget allocations are not sufficient to address the scale of Pittsburgh’s affordable housing crisis and requires further efforts to address these issues.
NOW, THEREFORE Be it resolved by the Council of the City of Pittsburgh that:
Section 1. The Mayor and the Director of the Department of Finance, on behalf of the City of Pittsburgh, are hereby authorized to enter into a Cooperation Agreement or Agreements with the Urban Redevelopment Authority of the City of Pittsburgh (URA) for the City to provide annual contributions of up to Two Million Five Hundred Thousand Dollars ($2,500,000) to support a 2023 issuance for affordable housing, at a sum not to exceed Sixty-Two Million Five Hundred Thousand Dollars ($62,500,000) over twenty-five years, subject to annual appropriation by City Council for future years.
Section 2. Said Agreement or Agreements shall be approved by the City Solicitor as to form.
Section 3. The Agreement or Agreements shall include language that addresses certain conditions that include the following:
1) Use of proceeds shall be consistent with the following goals:
a. Respecting and stabilizing existing communities, especially adherence to existing, adopted community plans;
b. Creating quality affordable housing opportunities, including the preservation of existing deed restricted affordable housing and naturally occurring affordable housing;
c. Maximizing the impact of resources by prioritizing projects with lasting affordability of at least 40 years, or the ability to revolve and replenish the funding available; and
d. Ensuring that households and other beneficiaries of this investment meet the qualifying criteria and program qualifications.
2) Within 90 days after the initial issuance and receipt of funds, the URA shall submit a report to the City Council detailing the proposed use of funds. The URA will develop this plan in consultation with community members, housing professionals, neighborhood organizations, and City Council.
3) The URA shall provide an annual performance report of the issuance proceeds to the City Council within 90 days of the end of each year. This report will include information on the number of units produced and preserved, income levels of households served, as well as the percentage and amount of funds that have gone to particular uses and updates around other benefits including, but not limited to, the following:
a. Preserving existing deed restricted affordable housing;
b. Preserving naturally occurring affordable housing;
c. Creating new deed restrictions with lasting affordability of at least 40 years;
d. Utilizing funding through revolving loan programs;
e. Creating new transitional housing in support of residents experiencing homelessness;
f. Leveraging other funding sources; and
g. Increasing and stabilizing the City’s real estate tax base.
4) Funds received from the bond issuance shall be subject to an annual audit by the City Controller and submitted to the City Council by July 1st of each year.
Section 4. The Cooperation Agreement shall be filed with the City Clerk after execution.