The Housing Authority of the City of Pittsburgh on Thursday earmarked $5 million that could be used to acquire a Homewood apartment building if the city needs to seize it to protect tenants.
The 100-unit Homewood House on Frankstown Avenue in Homewood is one of several properties throughout the region that New Jersey-based NB Affordable bought in recent years.
Officials and advocates have slammed the company for leaving the apartments — which are privately owned but publicly subsidized — in deplorable condition.
When the company’s leaders last year pleaded guilty to mortgage fraud, the future of apartments like Homewood House was called into question.
Homewood House could be at risk of going to sheriff’s sale, where it would be auctioned off to the highest bidder, if the city does not intervene, according to Councilman Khari Mosley, D-Point Breeze, who sits on the housing authority board.
Mosley in December authored legislation that paves the way for the city to invoke its eminent domain powers to take control of the apartment building.
On Friday, the councilman told TribLive the city is prioritizing efforts to purchase the property directly from the Federal National Mortgage Association — commonly referred to as Fannie Mae — which holds the mortgage on the property.
“We are prepared to move forward with eminent domain, but we are continuing communication with the mortgage holder in hopes we can acquire the property directly,” Mosley said.
The goal, Mosley said, is to ensure the property doesn’t go to sheriff’s sale, where it could be bought by a developer looking to tear the apartments down or by a slumlord who would leave the units in poor condition.
“We’re continuing with the goal of preventing displacement, preserving affordable housing, as well as protecting the property from falling into the hands of another bad actor,” Mosley said.
Chuck Rohrer, a spokesman for the city’s housing authority, said the $5 million earmarked for the property would be used solely for acquiring the property.
That does not include money that may be needed for repairs or upgrades.
Mosley has indicated the building may need new HVAC systems, electrical upgrades and energy efficiency improvements.
Officials are still “working out the exact mechanics” of how the city and housing authority may split acquisition costs and what those costs might total, according to Mosley.
“It would be a partnership, but ultimately it would fall under the jurisdiction of the housing authority,” he said.
It’s too soon to say whether the housing authority would operate the site as public housing on a long-term basis or sell it to a private partner who would manage it as affordable housing.
“That decision can’t be made until HACP conducts a comprehensive physical capital needs assessment, which would happen after acquisition,” Rohrer said.
Mosley said both the bill authorizing the city to move ahead with eminent domain and the money approved for acquiring the property signal that officials are committed to preserving the affordable housing at Homewood House.
“These steps show how serious we are about the acquisition,” he said.
Molly Onufer, a spokeswoman for Mayor Corey O’Connor, said the administration is working with various partners “to ensure that Homewood House is a high quality, affordable housing option in our community.”
O’Connor took office in January, after City Council had approved the measure allowing Pittsburgh to use eminent domain.
NB Affordable in 2023 purchased about 1,300 housing units in the region, including housing complexes in Rankin, West Mifflin and Pittsburgh’s Hill District neighborhood.
Since NB Affordable took control of those sites, advocates and officials have raised concerns about a slew of issues at their properties, including a lack of heat, black mold, rodent and insect infestations and a child falling through a floor.
The Allegheny County District Attorney’s Office filed felony charges against a limited liability company associated with NB Affordable because of conditions at the Mon View Heights housing complex in West Mifflin.