HACP, ARMDC support First & Market, Letsche School adaptive reuse projects with Project Based Voucher (PBV)/Gap funding

The Housing Authority of the City of Pittsburgh (HACP) is pleased to announce our support of two recent adaptive reuse affordable housing developments by contributing more than $6 million of Project-Based Voucher funding, provided through the HACP's development arm, Allies & Ross Management and Development Corporation (ARMDC).

Beacon Communities is transforming the historic former Shields Rubber Co. building at First & Market streets Downtown, originally built in 1903. Once complete, the renovation will include 93 Project-Based Voucher senior units. The HACP has committed $3,800,000 in PBV/Gap-Financing to this project. A "groundbreaking" ceremony was held for stakeholders on Wednesday, Jan. 15, 2025, for the First & Market transformation project.

"The HACP has contributed over $59 million into PBV/Gap-Financing over the years, which has helped in the creation of over 1,000 units of affordable housing. That's what we support and that's what we do. Without the Department of Housing & Urban Development, we would not be able to do what we do," Michelle Sandidge, HACP's Chief Community Affairs Officer, said Wednesday during the First & Market kickoff event.

A second adaptive reuse project recently completed by Beacon Communities was the former Letsche School on Cliff Street in the Crawford-Roberts neighborhood of the Lower Hill District.

The Letsche School was built in the early 1900s, and served elementary students until April 1975 when the Pittsburgh Board of Education opted to transform it into an alternative learning center serving grades 8-12. It closed in 2007.

The new Letsche School Apartments houses 46 total units, with 25 of them PBV units.

Located within the Bedford Choice Neighborhoods boundary, the project also included the construction of four new 3-bedroom townhomes located across the street from the school.

The HACP and ARMDC invested $2,250,000 in PBV/Gap-Financing for this endeavor.

A ribbon-cutting ceremony will be held at 2 p.m. Thursday, Jan. 16, 2025, for invited guests at the Letsche School Apartments.

"The Housing Authority of the City of Pittsburgh and its development arm, ARMDC, are thankful for the many partnerships we have within the Greater Pittsburgh Region to help expand the city's affordable housing portfolio with projects like First & Market and Letsche School Apartments," said HACP Executive Director Caster D. Binion. "The adaptive reuse of these buildings not only provides much-needed housing to residents in need, but also preserves pieces of Pittsburgh's history for generations to come. Investing in Project-Based Voucher/Gap-Financing endeavors is one of many ways the HACP is continuing its mission to bring a higher quality of life to City of Pittsburgh residents."

Both the First & Market and Letsche School buildings are listed on the National Register of Historic Places.

According to information provided by Beacon Communities, the First & Market building and the Letsche School Apartments are more examples of Beacon's expertise in securing diverse funding sources. Letsche was funded through a $19.2 million mix of state, local, and private support, including $11.8 million in Low Income Housing Tax Credit equity and $2.5 million in Historic Tax Credit equity, as well as support from Chase Bank and Key Bank. First & Market's $40.8 million budget includes support from PNC, Key Bank, HACP, and the Urban Redevelopment Authority (URA), ensuring accessibility for seniors with incomes between 20% and 60% AMI. Beacon Communities anticipates a completion period of 18 months for this project, aiming to provide new housing options for seniors by mid-2026.

"Beacon Communities' Letsche School Apartments and First & Market projects represent the next chapter in Pittsburgh's housing evolution, combining historic preservation with modern, community-focused amenities. These projects affirm Beacon's commitment to creating equitable housing solutions that improve quality of life and revitalize neighborhoods," a press release from the company reads.

The PBV/Gap-Financing program is another tool that continues to bring affordable housing to the City of Pittsburgh, and is helping to further County Executive Sara Innamorato's 500in500 Initiativeto make 500 affordable units available within 500 days of its launch of June 6, 2024.

"Using all of the tools available to expand affordable housing in Pittsburgh is critical for us to build a city where everyone can thrive," said Mayor Ed Gainey. "This program creates more opportunities to expand affordable housing, so everyone can continue to live and work in Pittsburgh - and ensure that we bring affordability to more neighborhoods, help rebuild communities, and connect people to new areas of economic opportunities."

For more information on the HACP PBV/Gap-Financing investments, visit: https://bit.ly/4cbGnxm.

Contact: For more information, contact Michelle Sandidge, Chief Community Affairs Officer, at [email protected] or 412-456-5058.

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