Preserving Naturally Occurring Affordable Housing Through Loan Program

Naturally occurring affordable housing (NOAH) — a property that has not been deed restricted with respect to the rent or income limits of its tenants but simply offers affordable rents (defined as rent that is no more than 30% of a household's annual income for households at or below the applicable area median income (AMI) level) to individuals or families of low income — is frequently lost, particularly in gentrifying neighborhoods, by sale to a party looking to take advantage of the rising property values and opportunity to charge higher rents.

In response to this situation, the Urban Redevelopment Authority of Pittsburgh (URA) has created the Housing Preservation Program (HPP) to encourage the preservation of NOAH housing by providing access to quick capital, which is often difficult for nonprofits or those generally looking to operate affordable housing to obtain when a NOAH property becomes available for sale. The goal of HPP loans is to invest in NOAH in the