LISC/Neighborhood Allies Invests $500,000 in East End NeighborhoodsLeave a Comment
With funding support from the Urban Redevelopment Authority (URA), Pittsburgh Urban Initiatives (PUI), US Bank, Dollar Bank, and Local Initiatives Support Corporation (LISC) through Neighborhood Allies, East Liberty Development, Inc. (ELDI) and Smith NMTC Associates, LLC. closed on a New Markets Tax Credit project that will bring 26 units of affordable for-sale housing to East Liberty, Larimer and Garfield. We were honored to be part of the process.
After a two-year long process, the vision of creating more affordable homeownership opportunities in the East End neighborhoods of East Liberty, Garfield, and Larimer is finally coming to fruition. Helping to bring this project to life, Neighborhood Allies worked extensively with ELDI staff, consultants and professional advisors to structure a financial product that fit within a very complicated set of requirements to assist in closing a first of its kind financing structure in the Pittsburgh market. The project includes construction of six new homes and the rehabilitation of 20 existing homes. 18 out of the 26 homes will be sold to families with incomes at or below 80% Area Median Income (AMI).
In addition to providing desperately needed affordable housing in the area, this project will help to meet homeownership goals set by all three nieghborhood plans and advance goals set forth in the $30 million dollar East Liberty/Larimer HUD Choice Neighborhoods Implementation Grant. ELDI will also offer homeownership education and other opportunities designed to build wealth through partnerships with Open Hand Ministries and Circles Greater Pittsburgh to the homebuyers. The URA will also offer some defered mortgage financing to low-income buyers.
“We are thrilled to be a part of this truly innovative and complex development project, particularly at this pivotal time for housing in the east-end. Homeownership continues to be integral to building assets and wealth in low-to-moderate income neighborhoods, and this project actually raises the bar by providing desperately needed, quality affordable housing while also improving financial pathways for residents.” – Presley Gillespie, President of Neighborhood Allies
Over the years, LISC has supported ELDI with over $7 million in grants and loans, and were excited to be involved in their latest endeavor, as well. Similarly, Neighborhood Allies was happy to be able to provide technical assistance in order to close on a rather complex deal. Recently, we also have begun deploying this much needed real estate capacity to the community development system. Our Shared Real Estate Talent Program positions us to systematically supply critical technical assistance that allows local community organizations and emerging developers to access critical early stage expertise in evaluating a project, including design, budgeting, operating projections and right-sizing the financing package.