URA and a.m. Rodriguez Partner to Preserve Affordable Housing in South Side Flats
PITTSBURGH, PA (May 24, 2019) The Urban Redevelopment Authority of Pittsburgh (URA) announced today that it has closed on a $175,000 loan to an affiliate of a.m. Rodriguez, Inc., allowing this developer to buy out the limited partnership shares of two affordable housing developments located in the South Side Flats to ensure that the 99 units remain affordable. Rodriguez invested an equal amount of its own funds for this purpose.
Carson Retirement Residence is a 69-unit affordable senior apartment building located at 2850 East Carson Street, and Sarah Street Townhomes is a 30-unit affordable development located at 2825 Sarah Street in the South Side Flats. Both projects were completed in 2000 and were financed through the Low-Income Housing Tax Credit (LIHTC) program with subordinate, gap financing provided by the Pennsylvania Housing Finance Agency (PHFA) and the URA.
"The challenge of preserving affordable housing, particularly in a neighborhood like the South Side, requires a team effort. I want to thank the URA and a.m. Rodriguez for their work to preserve this senior and family-friendly housing," Mayor William Peduto said.
The limited partners were intending to eventually convert the developments to market-rate housing once the existing affordability covenants expired. Because of their location, these properties are very marketable and vulnerable to this type of threat. The URA provided this loan in exchange for an agreement by a.m. Rodriguez to extend the existing affordability covenants for an additional 30 years.
"a.m. Rodriguez is grateful to have the support from the URA and PHFA to preserve the affordability of these apartments for seniors and families who live in Pittsburgh’s South Side. Our combined efforts will protect the unique diversity of this neighborhood for future generations," said Victor Rodriguez, president of a.m. Rodriguez.
The URA Board of Directors approved the loan at their December 2018 meeting. The closing date was May 15, 2019.
About the Urban Redevelopment Authority of Pittsburgh (URA)
The URA is the City of Pittsburgh's economic development agency, committed to creating jobs, expanding the City's tax base, and improving the vitality of businesses and neighborhoods. The URA achieves this mission by assembling, preparing, and conveying sites for major mixed-use developments and by providing a portfolio of programs that include financing for business location, relocation and expansion, housing construction and rehabilitation, and home purchases and improvements. The URA is also committed to equitable development and incorporates best practices for equity and inclusion into its internal and external policies and activities.