A proposed new phase of the Oak Hill public/private housing development would involve 200 homes and a $49 million financing plan that contains several question marks.

An internal Pittsburgh Housing Authority analysis of the terms of Boston developer Beacon/Corcoran Jennison's proposal says the financing would involve $9 million in authority funds and at least $5.2 million in city money. It says the plan may violate federal guidelines, return too much profit to the developer, and result in an underpayment for the cost of the land.

Mayor Tom Murphy has said he wants to fast-track the development. Murphy "is committed to the project, and the city will continue to work on the details," mayoral spokesman Craig Kwiecinski said yesterday.

Murphy's intention to move forward with a new phase of Oak Hill has been criticized by some City Council members, since the mayor will leave office at year's end.

The proposal calls for construction on one of two Hill District parcels still owned by the authority from the former Allequippa Terrace housing complex. Of the homes, 48 would be public housing rental units; 50 would be rented privately at market rates; 32 would be for-sale condominiums; and 70 would be for-sale townhomes.

Beacon/Corcoran Jennison would build and own the homes. The developer built the first phase of Oak Hill, which includes 639 homes, mostly occupied by public housing residents.

Families from existing Oak Hill units would be moved into the 48 new public housing units, and their current homes would be sold or rented at market rates, the memo says.

The Housing Authority's piece of the financing package would include $5.4 million for the 48 public housing units, and $3.6 million for the renovation of the Wadsworth Hall recreation center.

The memo expresses concerns with Beacon/Corcoran Jennison's preliminary proposal.

The cost per public housing unit may exceed what is allowable under U.S. Department of Housing and Urban Development guidelines, according to the memo.

In addition, the memo says Beacon/Corcoran Jennison does not intend to commit its own money to the development, which "is unreasonable" in "a transaction that results in nearly $5 [million] in developer profit" while costing the authority $9 million.

A Beacon/Corcoran Jennison spokeswoman would not comment.

The developer proposes to pay the authority $2.5 million for the land, but $2 million of that would be withheld until after a subsequent refinancing, the memo says. That payment "may never be realized by the Authority" under some scenarios, the memo warns.

Currently, the city "can only commit to approximately $5.2 million" for roads and other infrastructure improvements, the memo says, raising questions about whether the work could be finished with that budget.

The memo also faults Beacon/Corcoran Jennison for going over budget on the existing Oak Hill units, saying the project "absorbed $11 [million] more than what was anticipated to construct 255 less [public] houses than promised."

Told of the proposal and of those concerns, City Council Finance Chairman Doug Shields said the plan seemed unlikely to win his support. Murphy's administration should not "expect council, or this council member, to support a project that has come up short on money in the past," Shields said.

The proposal would require the approval of the authority board, which has yet to schedule a special meeting requested by the administration. Council might have to vote on infrastructure funding and cooperative agreements between city agencies.