Pittsburgh’s zoning board denied a local developer’s request to skirt a zoning requirement mandating some units in a new apartment complex in Oakland be affordable for low-income residents.
Walnut Capital, the developer behind the East End’s Bakery Square, in February asked the zoning board for a variance for The Caroline at University Commons, a 159-unit apartment building on McKee Place near UPMC Magee-Womens Hospital.
The developer describes the development as “a student-friendly apartment community.”
Because the apartment complex is being built in Oakland, an inclusionary zoning requirement mandates setting aside 10% of the units as affordable housing.
Inclusionary zoning also is in effect in Lawrenceville, Bloomfield and Polish Hill.
The policy has sparked controversy. Supporters hope inclusionary zoning will ensure no one is priced out of desirable neighborhoods. Detractors worry it will deter development.
Jonathan Kamin, an attorney representing Walnut Capital, earlier this year asked the zoning board to grant a variance so The Caroline would not have to earmark 16 of its apartments for low-income residents.
Kamin said the project would lose over $4 million in equity if Walnut Capital couldn’t charge market rate for every unit, and he argued the zoning policy shouldn’t impact student housing.
He also questioned whether the city had the authority to enforce the inclusionary zoning mandate.
Walnut Capital is part of the Building Association of Metropolitan Pittsburgh, a group that has sued the city over inclusionary zoning mandates.
U.S. District Judge Robert J. Colville in November dismissed their lawsuit, saying the builder’s association had not received a final decision from the city on whether they could circumvent inclusionary zoning rules because they had not sought variances or exceptions.
In February, Kamin told the zoning board he was before them “to go ahead and to request a variance so we can essentially tick off that box.”
Kamin in a written statement Tuesday said he did not intend to appeal the zoning board’s decision to court but hoped “to work towards an amicable resolution in the coming months.”
The zoning board — with chair Alice B. Mitinger recusing — in its denial pointed out that Walnut Capital was aware of the inclusionary zoning requirements when the developer proposed the apartment building.
The board determined the developer did not show any unique hardships that would permit a variance.