Pittsburgh and Allegheny County officials have devised a rescue plan designed to prevent the foreclosure of a Downtown building that houses low-income and near-homeless people.

The proposal would enable the residents of Wood Street Commons at 304 Wood St. to stay in their housing, city Urban Redevelopment Authority Executive Director Rob Stephany said yesterday.

At any one time, the former YMCA houses about 260 people.

Some residents had feared that the building's looming financial troubles could force them into the streets. Wood Street Shelter Inc., a nonprofit group that operates and partly owns the 17-story building, had said it might not be able to make a $200,000 mortgage payment due to PNC Bank next month.

Tom Mistick, part owner of Wood Street Commons, blamed the financial problems on the county's decision to move its MH/MR offices out of the building in September. The county's $90,000 rent payments made up about 90 percent of the building's monthly interest and principal payments on the mortgage, he said.

Under the "stabilization" plan to be considered by the URA board Thursday, $2.6 million would be used to pay off the mortgage. Nearly $1.6 million more would be set aside to cover operating deficits for two years while a long-term strategy is developed to make the building self-sufficient. Some money also would be reserved for needed repairs.

Both the URA and the county would contribute $1.66 million in grants and loans toward the plan. Another $1 million would come from local foundations and $1 million would be provided by the state, with part of that going to repay city and county debt.

As part of the plan, the URA and the other lenders are requiring that a new nonprofit group be formed to take ownership of the building or that the current general partnership be transferred to a new entity to be created by Action Housing.