Allegheny West Preservation Project

The Allegheny West Foundation (“AWF”) Scattered-Site Redevelopment Project was a major affordable housing preservation and new construction initiative led by the Allegheny West Foundation (AWF) to ensure the long-term viability and livability of low-income housing in the Allegheny West neighborhood of Philadelphia. The project included the rehabilitation of 38 existing housing units, the conversion and expansion of 3 units from two to three bedrooms, and the construction of 6 new three-bedroom homes on vacant parcels conveyed by the Philadelphia Redevelopment Authority—totaling 47 units across scattered sites.

Originally developed with Low-Income Housing Tax Credits (LIHTC) in the early 1990s, the AIHLP units had aged significantly and were in need of critical repairs and energy efficiency upgrades. The new project secured a second round of LIHTC financing, with PNC Bank serving as the new investor through Allegheny West Housing 1, LP (AWH1LP), and an AWF affiliate continuing as general partner. PNC provided a bridge loan and committed to LIHTC equity at $0.948 per credit.

The rehabilitation scope included the installation of new windows, insulation, HVAC systems, plumbing, and EnergyStar-compliant fixtures, along with solar photovoltaic panels to offset electricity usage. New construction homes were wood-framed, two-story infill units designed to blend into the neighborhood and exceed 2009 IECC energy standards. All units were fully VisitAble or accessible, and two featured full mobility and sensory accessibility.

The project was carefully phased to avoid displacement. Vacant units and new construction homes were completed first, allowing current tenants to relocate within the development during rehab without permanent displacement. A relocation fund covered any temporary moves, and no households were permanently relocated.

Stone Sherick played an essential leadership role throughout the redevelopment, guiding the structuring of the LIHTC transaction, coordinating the transfer of assets from AIHLP to AWH1LP, and ensuring compliance with PHFA, HUD, and city funding requirements. Stone Sherick’s efforts in aligning the financing strategy, rehabilitation scope, and phased construction plan were crucial to the success of the project. Their expertise also ensured the project integrated seamlessly with adjacent neighborhood investments, including the Bakery Square commercial redevelopment and the City’s Panati Playground expansion, which included a community room leased to the development.

The project preserved deeply affordable units for households earning below 50% of AMI, with a dedicated subsidy reserve allowing up to five units for extremely low-income households (<20% AMI). A robust social services plan was implemented, building on AWF’s longstanding tenant support model.

By combining preservation with strategic new development, this project extended the life of much-needed affordable housing, stabilized a key neighborhood, and supported equitable investment in the Allegheny West community.