Pittsburgh City Council

City property sales to out-of-state buyers rejected.

Written by Amy Whipple

City council is looking for a mechanism to stop out-of-state limited liability companies (LLCs) purchasing property at auction.

Council denied four tax sales at its Dec. 17 committee meeting. They include properties in Garfield, Troy Hill and the Hill District by LLCs out of Florida and Virginia and a real estate agent from Texas.

Council Member Anthony Coghill of Beechview said, “For me, it’s the biggest threat to affordable housing at this point.” He believes mass purchasing by LLCs in his district effectively controls rent prices and sales markets.

According to Director of Finance Jennifer Gula, sometimes individual purchasers stand in for LLCs, though all purchasers have to state the planned use for the property. “I can’t stop them from buying property,” she said, “but it was absolutely a misrepresentation of who they were and what they were actually doing.”

While at auction there are no residency restrictions on who can bid on properties and the preliminary sale has to go to the highest bidder, council gives final approval and can reject sales for any reason.

Council Member Barb Warwick of Greenfield expressed concern about purchasers either sitting on properties in emerging neighborhoods or otherwise not using the property as intended.

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