Pittsburgh Urban Initiatives Awarded $50 Million in New Markets Tax Credits to Drive Economic Development
PITTSBURGH, PA (September 2, 2021) The Urban Redevelopment Authority of Pittsburgh (URA) announced today that Pittsburgh Urban Initiatives (PUI), a Community Development Entity (CDE) affiliated with the URA, has been awarded $50 million in New Markets Tax Credits (NMTC) by the U.S. Treasury Department.
The New Markets Tax Credit Program (NMTC Program) helps economically distressed communities attract private investment capital, providing critical funding to fill project financing gaps. Communities benefit from the jobs associated with these investments, as well as greater access to public facilities, goods, and services such as manufacturing, food, retail, housing, health, technology, energy, education, and childcare.
PUI is one of only 100 entities in the nation to receive the competitive funding and one of only 16 serving local markets.
"I’d like to congratulate PUI on securing yet another NMTC allocation as this will bring another $50 million to invest directly into our communities and support revitalization in city neighborhoods,” said Mayor William Peduto. "I'd like to thank our partners doing this important work locally as well as our federal representatives that continue to support transformative development in our area like Senator Casey and Congressman Doyle."
Since February 2011, PUI has received $238 million in NMTC allocation in seven awards. Previous tax credit awards have helped to finance numerous Pittsburgh developments, including East End Cooperative Ministry’s Community House, the Energy Innovation Center, Wood Street Commons, scattered site affordable housing in Garfield and East Liberty, 7800 Susquehanna Street, Point Park University’s Pittsburgh Playhouse, and City of Asylum.
"This NMTC allocation will allow the URA to continue investing in projects that create community benefit through jobs, improved access to commercial services such as fresh food, and much needed affordable for-sale housing," said URA Executive Director Greg Flisram. “I applaud PUI President Rebecca Davidson-Wagner, and our consultant team, Affirmative Investments, on their successful track record of attracting private capital to benefit low-income communities in our city."
More than 3,792 permanent jobs, 4,443 residential units, 3,066 construction jobs, and over half a billion dollars in total project costs have been created through PUI projects funded with NMTC. This $50 million will help fund additional projects in PUI’s pipeline, bringing more jobs, units and opportunity to Pittsburgh communities.
“New Markets Tax Credits provide important support for developments that address pressing community needs in Pittsburgh and other municipalities across the country,” Congressman Doyle said. “They can leverage a tremendous amount of private investment into economically distressed neighborhoods. I’m very pleased that the URA and its partners have been successful in competing for these New Markets Tax Credits and then using them to attract private capital into investments that meet these neighborhoods’ development needs.”
“I’d like to extend my congratulations to Pittsburgh Urban Initiatives for securing $50 million in New Markets Tax Credits. This award will spur economic growth, job creation and neighborhood revitalization, and I look forward to seeing the benefits that Southwestern Pennsylvanian communities will see as a result of this investment,” said Senator Bob Casey (D-PA).
PUI’s NMTC funding is governed by the PUI Governing Board and Advisory Board, consisting of the URA executive director and URA board chairman, staff, foundations, and community development professionals who represent low-income communities throughout the City. To learn more about how to qualify for NMTC funding, please click here.
Pittsburgh Urban Initiatives (PUI) is an LLC sponsored by the Urban Redevelopment Authority of Pittsburgh (URA). PUI’s mission is to strategically invest in office, retail, mixed-use, and community facility developments designed to rehabilitate abandoned and blighted sites in the City of Pittsburgh. With continued success raising NMTC allocation available to Pittsburgh, PUI has helped drive increased investment activity in Pittsburgh’s neighborhoods to close deals that “but for” the NMTC would not be possible.
The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC program provides tax credits to investors who make “qualified equity investments” in investment vehicles called Community Development Entities (CDEs) who are required to invest in low-income communities. Pittsburgh Urban Initiatives LLC (PUI) is a URA-sponsored CDE, which is governed by a board consisting of the URA executive director and staff, foundations and community development professionals that represent low-income communities throughout the City. The board vets projects as they are presented. In addition, the URA has a loan underwriting team with outside NMTC expertise as well as local experience.
About the Urban Redevelopment Authority of Pittsburgh (URA)
The URA is the City of Pittsburgh's economic development agency, supporting the City’s economic development goals, which are designed to create a city of inclusive opportunity for residents, stakeholders, and communities. The URA is committed to creating more housing that is affordable to the average Pittsburgher; encouraging more entrepreneurship and small business development; promoting inclusive growth and quality job creation; expanding neighborhood and main streets revitalization efforts; and developing a talented workforce that is equipped with the skills of the future.