Two mixed-income housing developments in East Liberty are getting a makeover thanks to a long-time East Liberty developer and property manager, The Community Builders (TCB)—a nonprofit organization renowned for their community-centric approach. The organization plans to begin renovations on New Pennley Place I and II and Pennley Commons senior housing in 2024. But the story of these properties goes deeper than their physical upgrades. If we rewind the clock, the Pennley buildings can reveal a lot about East Liberty’s transformation and the value of a community-driven approach.
The story of Pennley Park Apartments
It’s the late 90s and East Liberty’s first community plan A Vision for East Liberty is just starting to come together—the result of hundreds of community meetings spearheaded by ELDI’s executive director Maelene Myers. The neighborhood has plenty of cheap housing but much of it is deteriorating from years of disinvestment. Safety and job opportunities are at an all-time low, and neighbors are demanding change.
ELDI begins to formulate a plan of action to create the mixed-income community long-time residents are calling for, and we find an early partner in TCB. Together, we set out to address some of the neighborhood’s biggest problem residential properties, including East Liberty’s infamous public housing high rises—East Mall, Penn Circle Towers, and Liberty Park—that had deteriorated into deplorable conditions, as well as another major development along Penn Avenue at the gateway to East Liberty’s historic retail area called Pennley Park Apartments.
Pennley was a moderately-priced residential “superblock” created as part of the sweeping urban renewal redevelopment that reshaped East Liberty in the 1960s. Over the years, the dense apartment complex became widely perceived as unsafe and undesirable. Substantial mortgage delinquencies, deferred maintenance, and high vacancy rates led the US Department of Housing and Urban Development (HUD) to foreclose on the complex in 1997.
That’s when ELDI and TCB stepped in to work with the community to reverse the decline and set a new standard for mixed-income residential development in the neighborhood. With the support of local civic groups and the Urban Redevelopment Authority of Pittsburgh (URA), TCB acquired the property in partnership with ELDI.
“Since opening our Pittsburgh office in 1994, TCB has sought to build upon the rich legacy of the East Liberty community. We are proud to have been part of the effort to successfully redevelop and revitalize this historic community,” said TCB Regional Vice President of Real Estate Development Juan Powell.
The transfer was accompanied by a $4 million HUD grant with the condition that the property remain affordable to low-income households. TCB provided professional management of the property and immediately began making improvements while operating the complex through a nearly four-year redevelopment process that included selected demolition, substantial renovation, and new construction.
The first phase of New Pennley Place opened in late 1999 and consists of 102 new and renovated apartments in mid-rise building townhomes and duplex style residences. The next two phases followed in 2001, with 34 new apartments in New Pennley Phase II, and in 2002, a 38-unit low-rise apartment complex for seniors with low incomes called Pennley Commons. In 2006, Penn Manor was completed, which added 55 family apartments to the site, all of which are affordable homes.
In total, New Pennley Place has created 229 new or substantially renovated rental homes, with 201 reserved for low- and moderate-income households.
Situated across from a Whole Foods Market along Penn Avenue in East Liberty, most wouldn’t suspect that the majority of these attractive townhomes and apartments are affordable housing, which is exactly the point. TCB shared ELDI’s philosophy that people of all income levels deserve quality housing and that blending market-rate with affordable is critical to fostering a thriving neighborhood.
“The New Pennley Place development was an important first step to show how you could build high-quality, well-designed housing which blended both affordable and market-rate units,” said ELDI Executive Director Maelene Myers. “It was important to the residents and to the neighborhood that there was no low-income housing stigma attached to these units.”
Additionally, TCB operates “Community Life” resident success initiatives that connect people to housing stability, economic mobility, and better health. These data-driven initiatives are part of wider “Community Success Plans” at the Pennley properties that reflect the goals and priorities residents set for themselves.
“The Community Builders is committed to building and sustaining strong communities for Pittsburgh residents of all incomes,” said Powell. “Through Community Life, our place-based model that uses healthy and stable housing as a platform, residents connect to community resources and opportunities to thrive. By creating programs and building strategic partnerships with residents and local stakeholders, our Pittsburgh residents have access to opportunities in early education, economic mobility, youth development, community engagement, voting access, healthy living, and resident leadership.”
What’s in store for New Pennley Place and Pennley Commons
It’s now been over 20 years since the first redevelopment of the Pennley Place Apartments and TCB is embarking on a second round of renovations so that these buildings can continue to serve mixed-income residents for another 15-20 years.
First up is New Pennley I and II, with these buildings’ 136 apartments set to receive extensive renovations, including new kitchens, new HVAC units, and bathroom upgrades. Common areas and common equipment such as the boiler and elevators will also receive an upgrade.
TCB plans to close on financing in the second quarter of 2024 and anticipate that construction will last for approximately a year.
This project will be funded through a combination of LIHTC, commercial debt, and loans and grants from the Pennsylvania Housing Finance Agency (PHFA) and the URA. The Housing Authority of the City of Pittsburgh (HACP) is also a major partner in facilitating the transaction.
For the second phase of renovations, TCB will update Pennley Commons. The scope of work will be similar to that of New Pennley I and II but not as extensive. TCB plans to close on financing in the second quarter of 2024, with construction slated to last approximately one year. This project is being financed with a grant from PHFA and a loan from the URA.
Juan Powell added, “Building high-quality affordable housing is crucial and it’s equally important to ensure its long-term viability. This requires a committed partnership with organizations like ELDI, HACP, URA, and PHFA. We are proud to soon begin construction on an improved environment for the esteemed residents of these two buildings.”