26 New Homes Planned for Larimer with $10.6 Million in Funding

Pittsburgh’s Larimer neighborhood will see 26 new and renovated homes over the next two years, a project backed by more than $10 million in public and private financing. The development marks a shift from rental projects to a focus on homeownership in the area.

The Larimer Consensus Group announced the plan on Thursday outside a recently restored home on Mayflower Street. The group formed a partnership with the city and the Urban Redevelopment Authority in June to launch the initiative. K. Chase Patterson, chairman of the group, stated that the goal is to create a diverse community where residents can live, work, and pray.

Construction is being led by East Liberty Development, Inc. The plan includes four renovated homes on Mayflower Street, with the remaining properties located on Mayflower, Meadow, Auburn, and Carver streets. Two of the homes will undergo rehabilitation, while the rest will be new builds. The total funding package consists of $3.3 million from the URA, $1.8 million in Federal Home Loan Bank grants, and nearly $1 million in state grants. The group also expects $5.5 million in mortgage financing for the prospective buyers.

Ted Melnyk, director of operations at East Liberty Development, noted that building a new home now costs approximately $500,000 due to inflation and higher interest rates. A rehabilitation project at 157 Mayflower Street cost about $380,000 because it required building a new house inside an existing shell. That home will be sold for $190,000. Melnyk explained that the subsidies are designed to help families achieve homeownership without being priced out of the neighborhood.

A comparable house on the same street recently sold for $600,000, which is roughly twice the price of the next most expensive home in the area. Melnyk said this price gap supports the goal of a mixed-income neighborhood. He added that improving blighted properties can attract builders to add market-rate homes, which may raise property values across the district.

Mayor Corey O’Conner said the city will use state funds to prepare sites in Larimer to lower costs for builders. State Sen. Lindsey Williams, whose district includes the neighborhood, said she will push to refund the Whole Home Repairs program to assist existing residents with property repairs. The initiative builds on a $30 million Choice Neighborhoods Implementation Grant awarded to Pittsburgh by the U.S. Department of Housing and Urban Development in 2014.

The O’Connor administration described the new plan as a step toward expanding the focus from affordable rental housing to affordable homeownership. The group aims to use intentional collaboration to address the area's vacant lots and support family living in the community.