The City of Pittsburgh will launch a long-awaited fund for low-income and first-time homebuyers on Tuesday. The grant program aims to put money in the hands of homebuyers citywide.
Low-income and first-time homebuyers will be eligible for up to $90,000 in grants and forgivable loans from the URA and the city’s housing authority, which also has its own homeownership assistance program.
Those who qualify may receive up to $50,000 in grant money from the URA to bring down the cost of a home purchased. Funds distributed by the URA may be matched by up to $40,000 through the housing authority’s homeownership program and used for second deferred mortgage financing to secure down payment funds.
Applicants must not have owned any real estate property within the last three years, and may not earn more than 80% of the area median income (AMI), or $75,850 annually for a family of four. They must also first qualify for a mortgage loan with one of three local lenders—Dollar Savings Bank, First Commonwealth Bank and Slovak Savings Bank—to receive funds.
“Hopefully, we’ll be able to get some more on board to expand this and really broaden the reach,” said URA Board Chair Kyle Chintalapalli.
The program is funded with $15.6 million in federal American Rescue Plan dollars. The agencies will leverage several million more for homebuyer counseling and education services, as well as the creation of additional affordable housing for sale.
“That's in helping to ensure that people have the tools so that when they get into homeownership, they're set up for success, and not just kind of put out there on their own,” said Chintalapalli, who is also the City of Pittsburgh’s chief economic development officer.
Chintalapalli said the Pittsburgh Housing Development Corporation, the URA’s nonprofit development subsidiary, will receive $4 million for housing construction or renovation. An additional $5 million, Chintalapalli said will go to community land trusts in the city.
All homebuyers will be eligible for services through the City of Bridges Community Land Trust, including advocacy and support for those who have difficulty making payments, legal representation during tax assessment appeal hearings and referrals to additional resources.
The program was first announced by then-Mayor Bill Peduto, with an initial focus on the Larimer neighborhood. With more ARPA funds available, its focus was shifted to citywide.
Borrowers will be required to sign a 30-year affordability requirement, which will ensure their property, if sold, goes to a household that makes no more than 80% of the AMI.
Interested homebuyers can apply to begin Tuesday.
