The city's Urban Redevelopment Authority yesterday approved a $5 million bridge loan to the developers of Market Square Place to enable them to begin construction by the end of May on the $32 million project.

The URA's loan covers $5 million promised to the project by Gov. Ed Rendell and the state Legislature as part of a Redevelopment Assistance Capital Program grant. Once Harrisburg frees the grant money, the URA loan will be paid back -- with interest and fees if it takes more than 18 months.

Brian R. Walker, chief financial officer for developer Millcraft Industries, said the URA grant would enable construction on the YMCA's new home on the first and second floors of the former G.C. Murphy's store to begin in time for its occupation in early 2009.

In another vote yesterday, the authority approved $1.6 million in financing for the North Side Coalition for Fair Housing to help the 10-year-old tenant-based organization obtain a limited partner interest in 324 housing units located in four North Side neighborhoods. The units in the Central Northside, California-Kirkbride, Charles Street Valley and Perry Hilltop neighborhoods are a mix of diverse housing that includes both Section 8 housing and affordable single-family homes.

The coalition will partner with the North Side Properties Development Co. to manage the units. The transaction allows the coalition to preserve and improve the units while getting a sustaining stream of operating income from rents. The Pittsburgh Partnership for Neighborhood Development will provide oversight.

Ronell Guy, who co-founded the North Side Coalition for Fair Housing, told the authority her group was trying to identify current unit residents who might purchase homes in the future.

"It's not going to happen overnight but it is in process," she said.

In other action, the authority approved a $10.3 million budget for 2008, a $2.5 million increase over last year, and the first significant increase in five years. The tax-exempt organization's budget includes a one-time payment in lieu of taxes of $1.5 million to the city of Pittsburgh.