Nearly one in three American households is now considered housing cost-burdened, meaning more than 30% of their income goes toward rent or mortgage payments.
In the short term, that can leave families struggling to make ends meet, put food on the table, and save for the future. But zoom out, and the ripple effects are much bigger.
It means more families moving farther from the communities where they work, attend school, and have built their lives.
It means more economically homogeneous neighborhoods and a greater class divide.
It means an already wide wealth gap continuing to grow.
It also means homeownership—and the stability, equity, and generational wealth it can create—slipping further out of reach for many.
Why affordable homeownership is so important
While affordable rental housing remains essential, it is only one part of the equation. Communities also need affordable homes for sale so that more residents have the opportunity not only to remain in their neighborhoods but also to invest in their futures there.
That is the need ELDI’s Mayflower Street Renewal Project is helping address. For more than three years, ELDI has been working alongside Main + Elm Development Company to rehabilitate four homes on Mayflower Street in Larimer for affordable homeownership. Two have already been completed and sold—177 Mayflower Street and 228 Mayflower Street—and work on the final two, 157 and 163 Mayflower Street, is now nearing completion.
To show what it takes to make affordable homeownership possible, we are highlighting the journeys of 177 and 228 Mayflower Street—from acquisition and financing to construction and sale—and the network of partners required to bring them back to life.
Step 1: Acquiring the homes
ELDI first purchased 177 Mayflower Street in 2023 and acquired 228 Mayflower Street through conservatorship in 2024.
From the beginning, the goal was to eventually rehabilitate both properties for affordable homeownership. But taking on severely distressed homes without knowing exactly when the necessary funding will become available requires patience, long-term commitment, and a willingness to accept risks that a typical private developer may be unable to take.
That is one reason community-based organizations play such an important role in neighborhood redevelopment. They can hold properties, pursue complex funding, and remain committed to a community’s long-term vision even when a project is not immediately profitable.
“A for-profit contractor could not or would not have taken on any of these homes. They would have lost $150,000+ on each one,” shared ELDI Director of Operations Ted Melnyk. “That’s where nonprofits play a key role in raising subsidies to offset construction losses, which is a win-win—the neighborhood gets a beautiful and high-quality rehab and a family gets an affordable homeownership opportunity at the same time.”
Step 2: Assembling the funding
Behind every affordable home is a complex funding puzzle, and the Mayflower Street homes were no exception. Once the properties had been acquired, the next step was finding and applying for the subsidies needed to rehabilitate them while keeping their eventual sale prices within reach of income-qualified buyers.
ELDI first turned to the Federal Home Loan Bank (FHLBank) of Pittsburgh. Through its Affordable Housing Program (AHP), FHLBank provides grants that help finance the purchase, construction, or rehabilitation of housing for low- and moderate-income households.
ELDI has received several FHLBank grants over the years, working with Full Quiver Consulting to navigate the extensive application process.
“When applying for FHLBank AHP funding, FHLBank looks at the financial feasibility and viability of the deal as well as the capacity of the development team,” explained John Connor, founder and principal consultant at Full Quiver Consulting. “This often requires months of pre-development planning before one can even assemble the components of a competitive application.”
After 10 months of this pre-development work, ELDI was awarded a $600,000 FHLB grant in 2023 to support the rehabilitation of the four Mayflower Street homes. Wesbanco served as the member bank through which the funding was administered.
That role is more than a technicality. A reliable banking partner who understands the mission is another essential piece of making affordable housing projects possible.
“Affordable housing is dearly needed, and ELDI has been offering it for a long time and will continue to do so into the future. We want to continue to assist them with providing it as long as possible,” shared Vice President of Wesbanco Michael O’Donnell.
While the FHLBank award covered a significant portion of the project costs, it was not enough to complete the homes on its own.
We filled in the additional gaps with a grant of around $361,000 from the Urban Redevelopment Authority of Pittsburgh, along with about $140,000 from a $400,000 award from the Pennsylvania Housing Affordability and Rehabilitation Enhancement Fund. The PHARE funding supported the Mayflower Street Renewal Project as well as other affordable homes in East Liberty and Larimer.
Layering these funding sources made it possible to cover the gap between what the homes cost to acquire and rehabilitate and what low-to-moderate-income buyers could reasonably afford to pay.
For the URA, supporting the project was about more than helping close the financing gap. Chief Housing Officer Quianna Wasler explained the broader impact they hope investments in affordable homeownership can have:
“Affordable homeownership opportunities offer Pittsburghers the ability to create generational wealth, while stabilizing neighborhoods that have seen years of disinvestment. Pittsburgh’s future depends on neighborhoods like Larimer and Homewood. We want to invest in affordable homeownership for families to remain in the city and create friendly and safe, walkable neighborhoods with local businesses that meet their needs. ELDI’s dedication to East Liberty, Larimer as well as the families who call these neighborhoods home is truly commendable, and their commitment makes it easy to partner with them in our work.”
Step 3: Rebuilding the homes
Both 177 and 228 Mayflower Street required extensive structural work before more visible renovations could even begin.
At 177 Mayflower Street, the front third of the house had been built without a proper foundation. As a result, the home had gradually begun to sink. Before any other rehabilitation work could move forward, a new foundation had to be constructed beneath that portion of the house.
At 228 Mayflower Street, an addition at the rear of the building had been torn away, leaving the house open to the elements. The property also had serious structural issues, requiring the project team to rebuild the back third of the home.
Much of this work also took place during the winter, with snow and freezing temperatures adding another layer of difficulty.
We relied on Shape Development Group to help navigate these challenges. The Pittsburgh-based general contractor specializes in affordable housing projects and understands the particular constraints that often accompany them.
“Affordable housing, especially rehabs, is really challenging,” explained Doug Van Haitsma, partner at Shape Development Group. “There are a lot more variables that you have to deal with versus if you’re just building out in the suburbs or doing market-rate work—from tighter budgets to addressing additional project objectives that aren’t directly related to construction.”
Those additional objectives extended beyond the physical rehabilitation of the homes. Since the project relied on several public and affordable housing funding sources, it also came with specific workforce participation requirements.
These included 18% participation by minority-owned subcontractors and 7% by women-owned entities, along with 12% minority workforce inclusion. Requirements like these help ensure that the economic benefits of neighborhood investment reach more businesses and workers. However, market-rate projects are not typically held to the same standards, making organizations willing to take on publicly funded affordable housing projects—like ELDI, Main + Elm, and Shape—especially important to advancing this kind of inclusion.
Even within those constraints, Shape never sacrificed quality. The team selected durable, energy-efficient features intended to reduce maintenance and utility costs for the first-time buyers who would eventually call the houses home.
These investments included high-quality flooring and cabinetry, a strong insulation package, and heat-pump water heaters. In addition to heating water efficiently, these water heaters help dehumidify the basements.
The same consideration shaped the architectural design of the homes. ELDI worked with Ryan England, partner and architect at citySTUDIO, to address existing structural problems while making decisions that would help the houses hold up well over time.
“One thing I think about is that I want to give an affordable homeowner a house that is going to be reliable and less likely to need major repairs down the road,” England noted. “For example, 228 Mayflower had a poor roof design, and it collected water in two places at a high concentration. We changed that so that they would have a roof that’s much more long-lasting.”
From the beginning of construction to completion, the rehabilitation of the homes took around seven months.
Step 4: Finding qualified buyers
Completing the construction was a big part of the process, but it didn’t end there. The final step was finding buyers who earned 80% or less of the Area Median Income and were prepared to take on the responsibilities of homeownership.
Working with the real estate agents, Mary Hester of LifeVenture Real Estate Solutions, DeAnna Davis of Keller Williams Realty, and Tamara Groden of Coldwell Banker Realty, ELDI connected 177 and 228 Mayflower St. with first-time buyers who were eager to put down roots in the community.
Each buyer received financial assistance for their down payment and closing costs. They also completed homeownership education through Catapult Greater Pittsburgh and other partners, covering topics such as budgeting, mortgage and deed requirements, home maintenance, and estate planning, helping them prepare for both the purchase process and the ongoing responsibilities of owning a home.
“This is important, because our goal isn’t just to get buyers into homes but also to help them stay in them, so they can safeguard their wealth and pass it on to future generations,” said Melnyk.
→ We will share more about the buyers and their journeys in future stories.
→ 157 and 163 Mayflower Street are nearing completion, and we will be looking for qualified buyers. If you or anyone you know is interested, contact Mary Hester at (412) 295-8498 to learn more.
The connecting thread: an expert project management partner
Coordinating every stage of the project—from funding applications and contractor schedules to compliance requirements and eventual sales—required close project management. Throughout the process, Main + Elm Development Company helped ensure that the many partners, timelines, and requirements stayed aligned.
Today, 177 and 228 Mayflower Street are once again restored and occupied homes, while work on 157 and 163 Mayflower Street is nearing the finish line.
“Four homes may seem like a small number compared with the scale of the affordable housing shortage. But each one represents years of planning, multiple funding sources, extensive rehabilitation, and the commitment of partners across the public, private, and nonprofit sectors,” said Executive Director of Main + Elm, Jonathan Huck. “It takes patient investment and community organizations willing to take on work the traditional market often cannot.”
In the short term, these efforts may mean a restored property and a more attractive street. But zoom out, and the ripple effects are much larger: a more stable neighborhood, greater investment, and the opportunity for a buyer to build equity, put down roots, and create a future in the community they call home.