Friday, March 6

URA still working with affordable housing developer despite financial problems, delays


Action News Investigates has learned the Pittsburgh Urban Redevelopment Authority repeatedly offered a developer millions of taxpayer dollars for one affordable housing project.But after six years, it’s gone nowhere.And the URA continues to work with the developer even after one of his lenders sued him for allegedly defaulting on a loan. And another business of the developer’s went bankrupt.The Fifth and Dinwiddie development site is across the street from the old Fifth Avenue High School and just blocks from UPMC Mercy and Duquesne University.Neighborhood residents said they need housing without a steep price tag.”There’s a lot of nice properties around it, but everything else is vacant or abandoned,” said Shay Butler of Uptown.In July 2019, the URA chose a development team led by Derrick Tillman to build office space and housing at the site, with 20 percent of the units affordableIn January 2020, the URA approved a $500,000 low-interest loan.In 2021, Tillman told the board he was eager to break ground.”We’re excited about this project for what it’s going to mean to this community, but really what it’s going to mean to the entire city,” Tillman said at the time.But the project stalled. Two years later, in August 2023, Tillman went back to the URA and the agency increased its loan amount to $2.4 million.”Today, we take a pause and celebrate this historic moment as we prepare to bring this project to fruition,” Tillman said.Months later, in March 2024, another Tillman company — DNT Property Investments — filed for bankruptcy. The company owned rental properties in Wilkinsburg and McKeesport.Bankruptcy records show DNT owed $194,000 in unpaid taxes on those properties.In August 2024, the company was liquidated, the assets sold to pay taxes and other creditors.In January 2025, the Black Economic Development Fund sued Tillman and his Fifth and Dinwiddie company, accusing them of defaulting on a loan and saying they owed $1.9 million. In court papers, Tillman and his company deny they owe that amount.A spokesperson for the development fund said they are “unable to comment on active legal matters.”Last April, three months after the suit was filed, the URA approved even more taxpayer funds for the project, this time a $3 million loan, which exceeds the maximum allowed under URA rules. The agency also approved spending $7 million from the city Housing Authority and $4 million from the state Housing Finance Authority.”We’re in the fourth quarter. We have the ball and now it’s time to go down the field and score and win the game,” Tillman told the URA last April. “The project is on track to close and start construction in the summer.”But summer has long passed and construction still has not started.Action News Investigates went to Tillman’s home and office to find out what happened.He left a voicemail saying he did not want to talk.“Just trying to focus on getting to the groundbreaking, and then we can do something more public-facing,” Tillman said.Action News Investigates asked the URA why it was still working with Tillman despite his financial problems.”The URA has a qualified buyer requirement, so we have been working with the developer on making sure they are a qualified buyer,” said URA Executive Director Susheela Nemani-Stanger.Action News Investigates pointed out that the process has lasted for six years.”It’s been going on for quite a while this project, yeah,” Nemani-Stanger said.In a 2020 interview with WTAE, Tillman said obtaining financing is difficult for minority developers.”One of the main challenges we continue to face is access to capital. Even though we’ve had many successful projects, it’s still a challenge for us to get the capital we need to continue to grow our company,” Tillman said at the time.After learning about the delays from Action News Investigates, Mayor Corey O’Connor said he will investigate.Asked if it is wise to commit taxpayer money to a developer with serious financial issues, O’Connor said, “I couldn’t speak for this project, but our goal is to get projects back on the tax rolls, open up as many affordable units as possible, not just for rent, but for homeownership.”Uptown residents said they had waited long enough.”Somebody needs to let them know ok you need to get going,” said Genaia Taylor.Asked if the city should still be working with Tillman, resident Marcus Allen said, “No, definitely not. It sounds like you’ve had chance number two, three and four, to me.”The URA, the city Housing Authority and the state Housing Finance Authority all said no money will be paid to Tillman and his company until they close on the project.In December, the URA once again pushed back the closing date. The deadline is now May of this year.

Action News Investigates has learned the Pittsburgh Urban Redevelopment Authority repeatedly offered a developer millions of taxpayer dollars for one affordable housing project.

But after six years, it’s gone nowhere.

And the URA continues to work with the developer even after one of his lenders sued him for allegedly defaulting on a loan. And another business of the developer’s went bankrupt.

The Fifth and Dinwiddie development site is across the street from the old Fifth Avenue High School and just blocks from UPMC Mercy and Duquesne University.

Neighborhood residents said they need housing without a steep price tag.

“There’s a lot of nice properties around it, but everything else is vacant or abandoned,” said Shay Butler of Uptown.

In July 2019, the URA chose a development team led by Derrick Tillman to build office space and housing at the site, with 20 percent of the units affordable

In January 2020, the URA approved a $500,000 low-interest loan.

In 2021, Tillman told the board he was eager to break ground.

“We’re excited about this project for what it’s going to mean to this community, but really what it’s going to mean to the entire city,” Tillman said at the time.

But the project stalled. Two years later, in August 2023, Tillman went back to the URA and the agency increased its loan amount to $2.4 million.

“Today, we take a pause and celebrate this historic moment as we prepare to bring this project to fruition,” Tillman said.

Months later, in March 2024, another Tillman company — DNT Property Investments — filed for bankruptcy. The company owned rental properties in Wilkinsburg and McKeesport.

Bankruptcy records show DNT owed $194,000 in unpaid taxes on those properties.

In August 2024, the company was liquidated, the assets sold to pay taxes and other creditors.

In January 2025, the Black Economic Development Fund sued Tillman and his Fifth and Dinwiddie company, accusing them of defaulting on a loan and saying they owed $1.9 million. In court papers, Tillman and his company deny they owe that amount.

A spokesperson for the development fund said they are “unable to comment on active legal matters.”

Last April, three months after the suit was filed, the URA approved even more taxpayer funds for the project, this time a $3 million loan, which exceeds the maximum allowed under URA rules. The agency also approved spending $7 million from the city Housing Authority and $4 million from the state Housing Finance Authority.

“We’re in the fourth quarter. We have the ball and now it’s time to go down the field and score and win the game,” Tillman told the URA last April. “The project is on track to close and start construction in the summer.”

But summer has long passed and construction still has not started.

Action News Investigates went to Tillman’s home and office to find out what happened.

He left a voicemail saying he did not want to talk.

“Just trying to focus on getting to the groundbreaking, and then we can do something more public-facing,” Tillman said.

Action News Investigates asked the URA why it was still working with Tillman despite his financial problems.

“The URA has a qualified buyer requirement, so we have been working with the developer on making sure they are a qualified buyer,” said URA Executive Director Susheela Nemani-Stanger.

Action News Investigates pointed out that the process has lasted for six years.

“It’s been going on for quite a while this project, yeah,” Nemani-Stanger said.

In a 2020 interview with WTAE, Tillman said obtaining financing is difficult for minority developers.

“One of the main challenges we continue to face is access to capital. Even though we’ve had many successful projects, it’s still a challenge for us to get the capital we need to continue to grow our company,” Tillman said at the time.

After learning about the delays from Action News Investigates, Mayor Corey O’Connor said he will investigate.

Asked if it is wise to commit taxpayer money to a developer with serious financial issues, O’Connor said, “I couldn’t speak for this project, but our goal is to get projects back on the tax rolls, open up as many affordable units as possible, not just for rent, but for homeownership.”

Uptown residents said they had waited long enough.

“Somebody needs to let them know ok you need to get going,” said Genaia Taylor.

Asked if the city should still be working with Tillman, resident Marcus Allen said, “No, definitely not. It sounds like you’ve had chance number two, three and four, to me.”

The URA, the city Housing Authority and the state Housing Finance Authority all said no money will be paid to Tillman and his company until they close on the project.

In December, the URA once again pushed back the closing date. The deadline is now May of this year.



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