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Lower Hill LERTA & Greater Hill District Neighborhood Reinvestment Fund

LERTA (Local Economic Revitalization Tax Assistance) is a tax abatement program created by the Commonwealth of Pennsylvania in 1977. The LERTA Act authorizes local taxing bodies to provide a tax abatement for 10 years on eligible construction improvements. The Lower Hill LERTA District was established in 2015. The 3 local taxing bodies—the City of Pittsburgh, the Pittsburgh Public School District, and Allegheny County—named the Urban Redevelopment Authority of Pittsburgh (URA) as administrator of the Lower Hill LERTA.

 

The Lower Hill LERTA allows each taxing body to divert up to $250,000 in real estate tax increment, generated per parcel, on the Lower Hill Site, for a period of 10 years post development. The tax increment from the Lower Hill LERTA is to be diverted as follows:

  • 50% of future real property taxes will be retained by Pittsburgh Arena Real Estate Redevelopment, LP (PAR, an affiliate of the Pittsburgh Penguins), known also as the Retained Amount.
  • 50% of future real property taxes will be placed into the Greater Hill District Neighborhood Reinvestment Fund (GHDNRF or the Fund). 

The GHDNRF’s Guidelines (Guidelines) created an Advisory Board, which will make recommendations to the URA regarding which projects throughout the Lower Hill LERTA District it should fund with GHDNRF dollars.

Eligible uses of the GHDNRF include:

  • Administration, activities, and efforts consistent with the Community Collaboration and Implementation Plan (the CCIP)
  • Activities and efforts in support of the CCIP and Greater Hill District
    • Workforce Development and Job Placement Programs
    • Minority-owned and Women-owned Business Enterprise (MWBE) Development Initiatives and Business Counseling Programs
    • Mortgage and Rental Assistance Subsidies
    • Wealth Building Initiatives
    • Project Development
  • Recurring revenue initiatives under community control
  • Funding for Hill District Institutional Preservation
  • Matching funds to leverage local, state, and federal programs

The Advisory Board is made of the following community stakeholders:

 

At the financial closing of Blocks G1 (FNB Tower) and G4 (public open space), Office Partners XXIII Block G1 LLC (the Lower Hill Site Developer or the Developer) agreed to provide up-front monetization of the LERTA funds. The Developer took out a loan with First National Bank for both the Retained Amount and the GHDNRF, which it will be responsible for paying back with the future real estate tax increment generated from their project. In mid-September, nearly $7.2M was deposited into the Fund.

While not required, the Advisory Board intends to record all of their meeting for transparency and post them for public viewing on this webpage.

Check back to this page for information on upcoming GHDNRF funding rounds!

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