The celebration in Pittsburgh City Council chambers Tuesday over the creation of a Housing Opportunity Fund was short-lived. Even before the final vote was taken, the focus turned to finding a revenue stream to support the fund.
“We have now created a box with a bow and wrapping paper but there is no gift in it,” Councilman Ricky Burgess said. “We are now telling low- and moderate-income people in Pittsburgh that they count. The question is will we actually mean it?”
The Housing Opportunity Fund is intended to help preserve and create affordable housing in the city through subsidies and other supports.
The goal of bill sponsor Daniel Lavelle was to put at least $10 million into it each year, but months of debate, vote wrangling and compromise left the legislation without a designated funding source.
“This fund is designed … to allow people to be able to stay in their neighborhoods, to live there (and) to prosper,” Lavelle said. “To fix up vacant parcels that are already existing in our neighborhoods, to keep things affordable.”
Among the revenue streams being considered is an increase to the realty transfer tax. Burgess said there are four council votes and mayoral support for increasing the 4-percent tax, which is split among the city (2 percent) the school district (1 percent) and the state (percent). He would not list those who support the tax increase. Lavelle said he is also considering other options such as unused economic development funds or a tax on sugary drinks, which would require approval from the state legislature.
During a public input session, SEIU Healthcare Pennsylvania executive vice president Zach Zobrist called on council to take the realty transfer tax route.
“To me, that really focuses on those folks that are, you know, in the hot markets in Pittsburgh,” Zobrist said. “A lot of that’s going to focus on sale (of) commercial properties. I think these are all folks that as Pittsburgh’s thriving can chip in.”
Just before the final vote was taken, Burgess challenged council to act quickly in 2017 to fund the effort.
“I will not back away from this because I have seen too many people who say that the poor and needy are important," he said, "but whenever it comes time to actually do things to make their lives better the retreat for other… they have other explanations.”
The Fire Fighter’s Union has voiced concerns over using tax increase for anything other than increasing wages and pension payments or reducing health care costs.
The measure passed with seven votes. Councilwoman Darlene Harris abstained and Councilwoman Theresa Kail-Smith was absent to attend her brother’s funeral.
