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Council weighs housing fund cuts, surprise vehicle repair bills, and employee bus passes as $30 million budget gap looms

City Council

There may be less of an opportunity to build affordable housing.

Money for affordable housing could take a hit as council looks to cut $30 million from the mayor's 2026 budget. That could include the Urban Redevelopment Authority's proposed $10 million for its Housing Opportunity Fund. Council members strongly support the fund, which helps build and preserve affordable housing. For now, council is holding the bill for two weeks.

Written by Amy Whipple

As the city faces a $30 million budget deficit, affordable housing may be one area that takes a hit. 

The Urban Redevelopment Authority’s proposed spending of $10 million on the Housing Opportunity Fund (HOF) in 2026 may be one of the items on the city’s chopping block. 

The HOF supports the development and preservation of affordable and accessible housing in Pittsburgh. The proposed allocation would include $1 million in administrative expenses, or 10% of the budget. It splits the remainder according to area median income (AMI) categories: $4.5 million for people who earn 30% AMI, or $30,200 for a family of four; $2.25 million for 50% AMI, or $50,650 for a family of four; and $2.25 million for those at 80% of AMI, or $80,850.

The HOF’s programs include securing loans for constructing and preserving affordable rental units, addressing unsafe and unhealthy conditions for homeowners and short-term rental assistance. During a Dec. 3 committee meeting, Council Member Deb Gross of Highland Park estimated that a little over half of city residents live in rental units and approximately 5% of renters experienced eviction filings in 2024.

Though council members were strongly supportive of the program, they also have to cut $30 million from the mayor’s proposed 2026 budget.

“There’s an absolute return on our investment,” said Council President R. Daniel Lavelle of the Upper Hill District. “This investment actually brings tax dollars into our coffers, as opposed to the other way around, where much of the majority of our spending does not.” 

Council agreed to hold the bill for two weeks so members could have a better understanding of the city’s complete 2026 budget.

City Council

City fleet maintenance is another hole in the budget.

The city needs $400,000 to cover six months of vehicle repairs it didn't expect. It can't do the repairs in-house because the vehicles are modified for Pittsburgh's narrow roads and terrain. Council has placed the request on its legislative agenda. A fleet manager said expected savings on fuel and fees will cover the cost.

Written by Amy Whipple

Pittsburgh has received more surprise bills.

City council has placed a $400,000 request for unexpected vehicle repair costs on its legislative agenda.

Senior fleet services manager Firmin Maurice IV, said the money will pay for six months of completed repairs and will bring the city’s balance with contractor TransDev to $189,548. It does not include the upcoming bill for December repairs.

Maurice said an expected $687,124 in savings from fuel and administrative fees will cover the entire cost. Those savings will pay the remainder of the balance next year.

The increase brings the total for expected maintenance through 2029 to $79.3 million for the rest of the contract.

The city cannot repair vehicles in-house because they have been modified for Pittsburgh’s narrow roads and topography. Maurice said TransDev was the best choice out of proposal respondents. Council Member Anthony Coghill of Beechview asked if it was possible to renegotiate the contract. Maurice did not have an answer.

Council Member Deb Gross of Highland Park pointed out that it’s not just the aging fleet vehicles that are racking up pricy repairs: The new vehicles don’t seem to be holding up, either.

During the same meeting, council also agreed to lease five street sweepers for five years. The $2.3 million agreement includes maintenance costs.

City Council

City employees may receive prepaid bus passes.

Some city employees may get their bus passes paid for under a proposed one-year pilot. Only full-time employees under 65 who work Downtown would qualify, with the city paying $28 a month per pass. The finance chief estimated it would cost about $275,000 for 750 workers. Next, the passes will go on council's legislative agenda.

Written by Amy Whipple

The city may conduct a one-year pilot program in which it would pay for employees' Pittsburgh Regional Transit (PRT) transit passes.

The PRTner PASS allows employers to purchase reduced-price bus passes. If council adopts the pilot program, the city will pay $28 per month the transit passes for each full-time employee under 65. The catch: employees must work Downtown to participate.

“If we expanded it beyond specific strategic locations, the cost would jump up really fast,” said Chief Financial Officer Patrick Cornell, “and we’re not sure who would actually be using the pass to get to work.”

Cornell estimated the pilot program will cost approximately $275,000 for 750 qualifying employees. He said the city will also continue to offer transit subsidies to other city employees. Those cover about half the cost of monthly passes.

The University of Pittsburgh and Carnegie Mellon University have long offered free bus passes to employees, which Council Member Deb Gross of Highland Park called a point of jealousy.

Other council members also liked the idea of offering the benefit and reducing car congestion Downtown. Council Member Theresa Kail-Smith of Westwood, however, expressed concern about the already-short 2026 proposed budget.

 The passes will be placed on the legislative agenda.