Wilson Passes Legislation Creating a Real Estate Tax Abatement Program

Published on May 07, 2025

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Pittsburgh City Councilman Bobby Wilson Passes Legislation Creating a Real Estate Tax Abatement Program to Stabilize Downtown Pittsburgh

The final legislation incorporates various amendments to the original legislation after lengthy discussions among Councilmembers.

Pittsburgh, PA (May 7, 2024)—Pittsburgh City Councilman Bobby Wilson (D1) passedlegislationthis week that creates a new Local Economic Revitalization Tax Assistance (LERTA) program for Downtown to encourage adaptive reuse and conversion of existing vacant office buildings.

“The passage of this legislation has truly been a collaborative effort and I’m grateful for the robust discussions that took place over the last several months to get us to this point today. This LERTA program is a major tool that the City of Pittsburgh can use to stabilize the Downtown real estate tax market and incentivize the conversion of office towers to residences in our City,” said Councilman Wilson. “Pittsburgh needs to compete with other cities that are also using LERTA programs to build more housing and re-envision their Downtown areas. We are now ready to do that here.”

Council President R. Daniel Lavelle acknowledged the importance of the legislation and the significance of a unanimous vote from City Council. “I’m proud that Council came together after a series of difficult but necessary conversations to unanimously pass this critical piece of legislation. As Council President, I am committed to utilizing every measure available to stabilize and revitalize the significant real estate tax base located in Downtown Pittsburgh. The financial success of this part of my Council District is crucial in the economic flourishing of the entire City of Pittsburgh.”

“Spurring reinvestment in downtown is a top priority for the Gainey Administration,” Deputy Mayor Jake Pawlak said. “By providing additional tools to support a wide array of conversion projects, and by specifically incentivizing conversions that produce jobs and affordable housing, this new abatement program will play a critical role in our efforts to make downtown a thriving neighborhood for residents, visitors, and employees alike.”

Jeremy Waldrup, President and CEO of the Pittsburgh Downtown Partnership (PDP) highlighted the need for this legislation as Downtown confronts financial challenges. “We at the PDP are doing everything we can to position Downtown for a vibrant future, ultimately building toward a much higher residential population. To bring that future, we need to convert millions of square feet of vacant Class B and Class C office space to other commercial uses and housing. Housing for all and a Downtown for all. This legislation supports these goals.” Aaron Sukenik, Vice President of District Development for PDP, added, “This bill is also an important symbolic show of support for the redevelopment and repositioning of many Downtown buildings. This support is critical right now, as we work together with partners in government, philanthropy, business, and beyond, to achieve these goals. This is an all-hands-on-deck moment. We appreciate the hard work and dedication of Councilman Wilson, Council President Lavelle and all other Council members, to pass this enhanced LERTA for Downtown.”

Addressing the need for affordable residential housing options was a key priority of Council while deliberating on the creation of this program. This legislation offers an Enhanced Real Estate Tax Exemption for the creation of affordable housing in the following tiers:

  • 100% exemption if a project creates 10% of units available to households earning at 50% of the area median income (AMI)
  • 100% exemption if a project creates at least 20% of units available to households earning at 50% of the AMI, where the additional affordable units could be incentivized by utilizing Housing Authority of the City of Pittsburgh's (HACP) higher rehabilitation voucher rates
  • 95% exemption if a project creates 10% of units at 60% of the AMI
  • 90% exemption if a project creates 10% of units at 70% AMI
  • 80% exemption if a project creates 10% of units at 80% AMI

“We need a variety of tools in the toolbox to revitalize Downtown Pittsburgh and support the conversion of commercial property to fit the needs of the future and create a vibrant neighborhood with the amenities to support families with diverse social and economic backgrounds,” noted Stefani Pashman, CEO of the Allegheny Conference on Community Development. “We commend Councilman Wilson for introducing the Enhanced LERTA bill and thank the council members for supporting it so that together, we can create the Downtown Pittsburgh that we all know is possible: one that strengthens the role of our region’s core, bolsters the city’s position as a regional attraction and delivers on our goal of a next-generation economy for all.”

A major feature of this bill is the incentivization of job creation for projects that seek these real estate tax abatements in Downtown Pittsburgh. Eligible projects that create 30 to 39 jobs could receive a 90% tax exemption, while those that create 40 to 49 jobs permit a 95% tax exemption. Projects that create 50 jobs or more would be eligible for the maximum exemption of 100% in any single year.

"Our primary mission is and always will be protecting thousands of good union jobs as downtown Pittsburgh continues to go through a massive transition post-COVID," said Sam Williamson, 32BJ SEIU WPA District Director. "This legislation will spur the investment we need to revive downtown, keep our members in their jobs, and ensure that new housing developments have units they can afford to live in. We commend Councilman Wilson for looking toward a better future for the people of Pittsburgh. 32BJ members are the engines that keep our downtown clean, safe, and beautiful, and we are excited to continue that legacy as we work together to revive downtown."

For press inquiries, please contact Councilman Wilson’s Community Relations Manager, Julianne Hluska, at (412) 676-5758 orjulianne.hluska@pittsburghpa.gov.

Julianne Hluska

412-676-5758

julianne.hluska@pittsburghpa.gov

 

 

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