Former hospital in Hill to become senior housing

A former tuberculosis hospital in the Hill District is in line to become an affordable housing complex for senior citizens.

The Pittsburgh Urban Redevelopment Authority board approved six months of negotiations with developer Ralph A. Falbo Inc. Thursday to convert the URA-owned site into housing.

Under the plan, Falbo is proposing 24 affordable one-bedroom units over three buildings in the old hospital complex, located at 2851 Bedford Avenue in the Hill, at a cost of $6.7 million.

“This has been needed for a very, very long time,” said URA board member R. Daniel Lavelle, a city councilman who represents the Hill.

The housing would be available to households with incomes at or below 60 percent of the area median income, according to the URA board agenda.

There also are plans to redevelop about 4,500 square feet on the ground floors of the nearby

Milliones Manor for an adult day center to be operated by SarahCare. The developer also is planning upgrades to sidewalks, common area lighting, and other apartments on other parts of the site.

Also Thursday, the URA board advanced $1.5 million in funding for the new affordable housing trust fund approved by city council last December.

The money will be used to aid in developing affordable housing throughout the city. The URA will be reimbursed the $1.5 million when money starts flowing from the increase in the deed transfer tax from 4 to 4.5 percent that took effect earlier this year to finance the fund.

“We’re actively going to put money in now so we can start to make those investments now,” said Kevin Acklin, URA board chairman.

However, no allocations from the fund are expected to be made anytime soon. The URA board Thursday authorized the hiring of New York-based HR&A Advisors for an amount up to $76,000 to create policies and procedures for the fund.

In addition, Mayor Bill Peduto is expected to submit to council within the next couple of weeks the names of people to fill a 17member advisory board that will make recommendations on how funds should be expended.

The URA board will have the ultimate say over the expenditures.

In a separate matter, the board sold a parcel of land at the Pittsburgh Technology Center in South Oakland for $539,055 to the Burns & Scalo real estate firm for the construction of a six-story, 155,932-squarefoot office building known as the Riveria.

The firm expects to spend $35.7 million on the project, which it is undertaking without a signed tenant. Jim Scalo, the company’s president and CEO, said he is “very comfortable with the risk” involved.