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WHEREAS, the Observatory Hill Development Corporation (“OHDC”) is engaged in an ongoing issue with the Housing Authority of the City of Pittsburgh (“HACP”) concerning the rents of two Housing Choice Voucher units at 3917-3925 Perrysville Ave that could ultimately result in the displacement of two long-term residents; and
WHEREAS, OHDC owns and operates the Five Points property at 3917-3925 Perrysville Ave, which includes six Housing Choice Voucher apartments and three commercial spaces; and
WHEREAS, two of the Housing Choice Voucher apartments remain occupied by long-term residents whose units were originally approved at rents significantly below HACP’s current payment standards for comparable units; and
WHEREAS, following the COVID-19 pandemic, OHDC has faced increasing operating costs, rents substantially below HACP’s current standards, and ongoing vacancies, making the property’s original financial projections and operating budgets unsustainable; and
WHEREAS, through tenant turnover, OHDC has been able to adjust the rents on several of the units; however, two units occupied by long-term residents remain at approximately half of the rent currently approved for comparable units; and
WHEREAS, under HACP’s current policies, rent increases for occupied units are limited to $100 annually and are subject to specific anniversary dates and advance-notice requirements, meaning it would take approximately ten years for the rents on the two affected units to reach HACP’s current standard rates; and
WHEREAS, HACP has advised OHDC that if an existing tenant leaves and the unit is subsequently inspected and reprocessed, OHDC may request that a new rent be established in line with HACP’s current standards; and
WHEREAS, OHDC has repeatedly engaged with HACP to seek a solution that would allow the existing tenants to remain in their homes and has requested an exception or alternative mechanism to address the rent disparity, but has been informed that no such option ...
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