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HOF advisory board approves $81,480 loan to PHDC to rehab two blighted homes in Beltsville neighborhood
Summary
The advisory board approved an 18‑month, 0% interest FSDP loan of up to $81,480 to Pittsburgh Housing Development Corporation for rehabilitation of 844 Gearing Avenue and 814 Delmont Avenue; the borrower will repay principal upon sale or at 18 months.
The Housing Opportunity Fund advisory board voted to authorize a for-sale development program (FSDP) loan of up to $81,480 to Pittsburgh Housing Development Corporation (PHDC) for rehabilitation of two blighted single‑family houses at 844 Gearing Avenue and 814 Delmont Avenue in the neighborhood described in the presentation as Belsouvre/Beltzner (transcript spelling inconsistent), Ward 18.
Nicholas (Nicholas/Niklas) Persson, a lending analyst in the URA's residential lending department, presented the request and described a total development cost of $736,631 for the two‑house project. Persson said PHDC plans to cover costs with an equity equivalent investment from Dollar Bank, an allocation of ARPA funds received via a subrecipient agreement with the URA, and the requested FSDP construction loan to fill the financing gap. The URA presentation said the loan would be 0% interest with an 18‑month term; repayment is due in a single installment within 10 business days of the sale of the last unit or 18 months from financial closing.
Persson provided planned sale prices and sizes: 844 Gearing projected at about 1,250 square feet to sell for $225,000; 814 Delmont projected at about 1,260 square feet to sell for $220,000. To enhance affordability for households earning under 80% AMI, PHDC will assist buyers in applying for second deferred mortgages through URA programs (HRPD or OwnPGH) once the houses are ready for sale.
Board member Ellie Fisher asked about affordability term lengths; URA staff explained a loan (rather than a grant) typically carries a minimum 15‑year affordability term per FSDP guidelines, and URA staff had recommended a 20‑year construction-side affordability restriction for this loan. URA staff said additional affordability tools could be layered at sale, such as a deed restriction through OwnPGH or a second deferred mortgage, potentially extending affordability beyond the 20 years tied to construction funds.
PHDC financial operations manager David Howe joined the meeting to answer questions. During the vote, Jerome Jackson announced a conflict and abstained (he identified himself as PHDC chair); the motion carried.
The board instructed URA staff to circulate conflict-of-interest forms and to note the abstention in the public record. URA staff also committed to add half‑repay (loan repayment) reporting into the board's standard financial reports on request.
Staff and board agreed to follow up with a scoring rubric and criteria for other HOF programs and to present additional program guidance to the HOF advisory board in future meetings.
