Westmoreland Housing Authority leverages properties to pay for new construction, renovations

Rich Cholodofsky, Tribune-Review, Greensburg, Pa.
·2 min read

Jun. 15—Westmoreland County Housing Authority officials said Tuesday the agency secured more than $17 million in low-interest loans and will seek to borrow another $4.5 million to pay for new construction projects and renovation of existing properties.

Director Michael Washowich said the low-income housing agency used four of its larger properties as collateral for the loans to continue a building program launched a decade ago that produced two new facilities in Hempfield and is now attempting to finance another in Irwin.

"We continue to look at opportunities in areas underserved with affordable housing," Washowich said.

The housing authority operates 1,600 public housing units and another 900 subsidized residences on more than 30 properties throughout Westmoreland County.

Last year, it opened Odin View Apartments, a $13.1 million three-story building in Hempfield that houses 47 apartments adjacent to South Greengate Commons, which was completed in 2013 and was the authority's first new construction project in decades.

Both Hempfield facilities were paid for through the use of federal tax credits. The authority earlier this year applied for tax credits to pay for a $14 million project to build a 50-unit apartment building in Irwin. Financing approval could come in September for that project, Washowich said.

Officials said the new loans will give the authority additional options to pay for more construction projects.

"It puts us in a much better position to use our own resources," Washowich said.

Plans are being finalized for a proposed 24-unit development in Norvelt on a two-acre property donated to the authority by the Catholic Diocese of Greensburg. The Churchview Estate development is expected to cost about $5 million.

To secure the long-term loans, the authority borrowed against the values of four of its larger buildings, Loyalhanna Apartments, Hempfield Towers and Arnold Towers. Repayment of those loans will come from rents paid to the authority at those facilities.

In addition to new construction, officials said renovations of existing facilities are ongoing and some of the borrowed money will be used to pay for those projects, including a recently completed effort to modernize all 97 units at Loyalhanna Apartments.

Washowich said the loans also will pay for renovations at Hempfield Towers. A $1.6 million project is set to begin later this summer to modernize 48 apartments on the upper two floors of the nine-story highrise. When completed, all 202 units at Hempfield Towers will have been renovated and modernized, Washowich said.

Rich Cholodofsky is a Tribune-Review staff writer. You can contact Rich at 724-830-6293, rcholodofsky@triblive.com or via Twitter .