Pittsburgh City Council

City to extend tax break for affordable senior housing.

Written by Amy Whipple

The Department of Finance requested to extend three cooperative agreements with NCSC/USA Housing Development Corporation.

The Louisiana-based company owns three affordable high-rise apartment buildings for seniors which are located in Perry South, Brighton Heights and Lawrenceville. The 20-year agreements with the city, school district and county have allowed the NCSC/USA to make set payments in lieu of property taxes. It wants to extend its agreements for another 10 years.

The annual payment for each building ($145-$155) is calculated as if paying taxes on a property assessed between $15,000-16,000. The housing authority has a similar agreement with the city for the properties it owns. 

The three buildings are actually assessed by the county at a combined $14.45 million, which would garner the city nearly $140,000 if taxed at the market value.

According to Director of Finance Jen Gula at the Feb. 11 meeting with members of council, not extending the agreements would result in zero income from the property owner since the buildings are operated as nonprofits and exempt from taxes. 

Gula said that the city’s solicitor and the school district have agreed to the payment plan. She did not know the county’s stance. 

Council Member Deb Gross of Highland Park, who represents Lawrenceville, expressed concern that the request did not include details about the original or extended agreements and that approving the legislation would give the department the ability to negotiate terms without council oversight.

The original contract does not appear to be available through the city’s two public portals.

Council voted to move the legislation forward.

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