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Proposed bill would increase city tax to pay for affordable housing

PITTSBURGH — Pittsburgh City Council is now one step closer to making a major commitment to affordable housing.

Today, councilmen Daniel LaVelle and Rev. Ricky Burgess proposed a 1 percent increase in the city's Real Estate Transfer Tax to help pay for the Affordable Housing Fund.

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Residents who attended a hearing Tuesday said the plan would put home ownership futrher out of reach.

"The average price of a house is $120,000," one person said. "When you think about the additional one percent, that's another $1,200 dollars that our children, sisters and brothers are going to have to roll into their mortgage."

If approved, Pittsburgh's realty transfer tax would raise from four to five percent, making it the highest in the state of Pennsylvania.

Councilman Dan Gilman said it's not ideal, but the city is limited in how it can raise money due to restrictions from Harrisburg.

The $10 million collected would help with foreclosure prevention and rehabilitating vacant city housing.