In lawsuit, developers say they can't build housing in Pittsburgh under mayor's constraints
PITTSBURGH (KDKA) — Is the Gainey administration putting roadblocks in the way of development in the city of Pittsburgh?
It's been a tough time for developers, and many say the administration is making things tougher, especially for building new housing.
Mayor Ed Gainey ran on a platform of developing affordable housing in the city. But in a federal lawsuit, developers say they can't build any housing under his constraints.
Retired dentist Rand Werrin tried to sell his old office and other buildings in Oakland to a private developer who wanted to build a student high-rise. But he says the Gainey administration's affordable housing requirements made the project unprofitable and drove that developer away.
"Instead of putting up roadblocks and stumbling blocks, he should be helping people like me who are trying to develop this area and make it better for the University of Pittsburgh," Werrin said.
With high interest rates, high cost of materials and shrinking demand, it's been a hard time for developers to build anything. But the Builders Association of Metropolitan Pittsburgh says the affordable housing dictates have been the final nail in the coffin for many housing projects throughout the city.
Under so-called inclusionary zoning, the city requires 10 percent of all units to be priced affordable in new housing projects. That applies to three city neighborhoods and was recently expanded to Oakland, where developers say the added costs have brought those projects to a halt.
"The inclusionary zoning requirements have shut down the development projects in those neighborhoods where it has been designated: Lawrenceville, Bloomfield, Polish Hill and now Oakland," said Jim Eichenlaub of the Builders Association of Metropolitan Pittsburgh.
"Mayor Gainey is committed to affordability for the people of Pittsburgh. We are facing an affordable housing crisis and we're going to use all the available tools we have," said Maria Montaño, communications director for the mayor's office.
But the city says it will not be lifting the affordability requirements anytime soon. Montaño says those requirements pass legal muster and are necessary to ensure more equal access to housing in Pittsburgh for all income groups.
"We need more affordability housing in the city of Pittsburgh," Montaño said. "And we're going to do what we can to promote affordable housing and also to protect tools like inclusionary zoning."
But while this matter continues to wend its way through the courts, the builders say many projects are on hold and those developers may be looking elsewhere.