Seeking to build on Pittsburgh's reputation as a leader in green building practices, the city's Urban Redevelopment Authority intends to offer incentives, including discounted interest rates and other financial assistance, to encourage such development.

URA board members are expected to vote tomorrow on the package of policies, programs and incentives designed to foster green building design and construction not only Downtown but in city neighborhoods as well.

To encourage such practices, the URA is offering developers who earn a Leadership in Energy and Environmental Design, or LEED, rating from the U.S. Green Building Council reduced interest rates on some of its more popular loan programs.

In addition, developers who pursue a LEED certification won't have to make principal or interest payments on the URA loans for 12 months. Loans or grants also will be available to cover all or part of green building-related costs in city housing construction.

URA Executive Director Jerome Dettore said he pushed for the policies.

"I felt we had an obligation as a public agency to develop environmentally sound buildings and environmentally sound policies," he said. "I guess I'm somewhat embarrassed that we haven't done it sooner."

As part of the initiative, the URA hopes to team with developers to do two LEED-rated pilot projects, one commercial and one residential.

The agency also plans to revise its Streetface program to include green design elements; seek funding for a staff position to develop, implement and track the agency's green initiatives; and continue to include green design as criteria for evaluating all requests for proposals.

Mr. Dettore said the reduced interest rates, grants and loans are designed to encourage developers to use green building construction even if upfront costs are higher. The savings generally occur over time, he said.

The URA eventually may require green building design and construction in projects it funds, Mr. Dettore said. But it felt doing so at this point would discourage development, and financial incentives would work better.

Rebecca Flora, executive director of the Green Building Alliance, called the proposed URA incentives and policies a "good first step." She said the URA is the only city agency she's aware of to adopt a green building policy. She added that has "huge value" in providing leadership.

"I think it's wonderful. It's good to see a city agency actually becoming a more active participant [in green building construction]. It's something we've been hoping for -- for a long time," she said.

Likewise, state Sen. Jim Ferlo, a URA board member who has promoted green building practices at the state level, said he supports the initiative.

"I think it's a major step forward and I applaud the mayor and his administration for embracing this policy," he said.