Affordable housing throughout the heart of Pittsburgh is getting a boost thanks to real estate development collaborations with PNC Multifamily Capital. Three recent projects show the power of low-income housing tax credits (LIHTC) in meeting the needs of the community, with two of the projects also taking advantage of historic tax credits (HTC).

“Together, these projects serve an important goal in helping to improve housing affordability in Pittsburgh, along with giving new life to some of downtown Pittsburgh’s historic buildings,” Head of PNC Multifamily Capital Todd Crow said. “For PNC Multifamily Capital, this support for our community is central to our mission.” 

Bedford Dwellings 

One of the developments is the three-part, phase two redevelopment of the historic Bedford Dwellings housing community, located minutes from downtown near Pittsburgh’s Strip District. Built in a high-demand area, affordable housing occupancy is at 99.4% with comparable properties having long waitlists for applicants.

This second phase will add 180 units as part of a broader 823-unit transformative project that will revitalize housing availability in the heart of Pittsburgh, with units including specific design features based on their target tenant profiles. Each part of phase two will include a unique mix of affordable housing solutions.

  • The first part includes 70 new-construction townhomes for families in eight two- and three-story buildings. It will include 37 income-restricted units for tenants earning at or below 20%, 50% and 60% of the area median income (AMI). The remaining 33 units will be offered at market rate.
  • The second part comprises 60 senior apartment units in a new construction, six-story building for tenants earning between 20% and 80% of the AMI.
  • The final portion of phase two will be the new construction of a single, six-story building to include 50 family apartment units for tenants earning between 20% and 80% of the AMI.

The three components of phase two are being developed simultaneously and are being underwritten as separate loans and equity investments by PNC. In addition to LIHTC, all phases also include energy credits. Altogether, PNC Multifamily Capital worked with developer TREK Development Group on the renovation and directly invested more than $44 million in LIHTC, HTC, energy and state tax credit equity in the project. PNC also provided a bridge loan of nearly $33 million, a construction loan of more than $16 million and agency loan commitments totaling more than $16 million.

KV May Building 

Built in 1909 as the flagship store for the May Drug Company which began in 1894, the 12-story historic May Building in downtown Pittsburgh will be transformed into an 86-unit modern mixed-income residence. The project will target families and seniors at 50% of AMI with 52 LIHTC units (all of which receive subsidy) along with 34 market-rate units, of which 14 will be covered by a project-based voucher, leaving 20 traditional market-rate units.

The property will be a strong example of creating an inclusive urban environment combining historic preservation, affordable housing and community development. The scope of the rehabilitation includes a new roof, new windows, elevator modernization, the creation of new accessible units and new unit interior finishes. When completed, the property will qualify for the National Green Building Standard Gold Certification.

Additionally, the May Building will provide supportive services to residents through Beacon Residential Management’s (BRM) Resident Services Program focusing on wellness, independence and community engagement. The services will also connect residents with existing service providers in the neighborhood. BRM has been facilitating and delivering social services for more than 60 years.

PNC Multifamily Capital worked with developer Beacon Communities Development on the renovation and directly invested nearly $18.5 million in LIHTC, HTC and state tax credit equity in the project. PNC also provided a bridge loan of $14 million.

Smithfield Lofts

Located in the Firstside Historic District along the Monongahela Riverfront, the Smithfield Lofts project will be an adaptive reuse of a 123-year-old, 12-story office building in downtown Pittsburgh. When completed, the building’s 46 family units will include four studio units, 26 one-bedroom units and 16 two-bedroom units to create a unique urban mixed-income community.

Affordable units will be restricted to 20%, 50% and 60% AMI levels, with seven market-rate units. The project will have 12 hearing/vision impaired units, nine of which will be fully accessible. Additionally, 16 of the LIHTC units will operate with a project-based HUD Section 8 subsidy.

Smithfield Lofts will offer newer units and amenities with competitive rents, positioning it favorably in the market in Pittsburgh’s urban core and a key contributor to the revitalization of the downtown area. Upon renovation, the property will qualify for the National Green Building Standard Gold Certification.

PNC Multifamily Capital worked with developer Woda Cooper Companies on the renovation and directly invested nearly $17.5 million in LIHTC, HTC and state tax credit equity in the project. PNC also provided a bridge loan of more than $13 million and a construction loan of more than $3.5 million.

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Capital multifamiliar de PNC es uno de los mayores proveedores de financiamiento integral multifamiliar de deuda y capital de la industria para viviendas asequibles y productos convencionales para adultos mayores. Todos los años, Capital multifamiliar de PNC financia o invierte en proyectos de vivienda asequibles y para adultos mayores para enfrentar la falta de opciones de vivienda y ayudar a que prosperen las comunidades. Comuníquese con Capital multifamiliar de PNC para obtener más información o comuníquese con su gerente de relaciones.