New funding could help finish Downtown Pittsburgh apartment conversions

More money is coming to help convert empty Downtown Pittsburgh offices into apartments. A $1 million federal investment will help create more affordable housing.

Regional and federal leaders said this money can help fill gaps with these multi-million-dollar projects. While it may not sound like much, it can help them get across the finish line.

For the Urban Redevelopment Authority, every penny counts when converting empty offices into housing. They've contributed more than $36 million over the past few years to this effort.

"We hope to direct this funding into one, or two, or multiple Downtown locations that are close to closing," URA executive director Susheela Nemani-Stanger said to reporters on Tuesday.

In the URA project pipeline, there's a total of 708 apartments that will come online, including 477 affordable units. Conversions like First and Market contribute 93 total units, all of which are considered affordable housing. Across Downtown, there are about 3,100 apartments, with 543 considered affordable. 

Congresswoman Summer Lee said efforts like this ensure everyone has a chance at housing security.

"We have the solutions to make life more affordable to really help people who need it the most," Rep. Lee said.

For Downtown, this also helps generate more taxes. With the city in a budget crunch, getting empty buildings converted into apartments helps raise the property assessment. In recent years, many buildings have had their assessments lowered, bringing in less tax revenue and higher taxes for homeowners. 

Right now, the URA said Downtown has a 94% residential occupancy rate, ahead of offices at 80%.

"Now, property values are going to be raised where there's a reassessment of the new property once completed. That money comes into city coffers, which really helps," Pittsburgh Mayor Corey O' Connor said.

The URA says that, over the next four years, there are 14 projects in the works. Those are expected to add almost 1,000 apartments, with 508 considered affordable.