For the second time, Carnegie council declined to accept a lowered assessment for Carnegie Towers, the federally subsidized 10-story residence on Capitol Drive that is in foreclosure.

The borough is under pressure from owner Carnegie Associates of Maryland and the Carlynton School District to approve an assessment reduction from $5.1 million to $1.6 million for 2007 and 2008.

Carlynton directors have agreed to the reduction, but Carnegie council said "no" on Feb. 2 and refused to reconsider the issue Monday.

The reduction cannot take place without the borough's approval, and the school district solicitor had asked council to take another look at the proposed assessment change.

The latest council vote was 4-1, with council President Mike Sarsfield the sole supporter of the assessment reduction. Council members Dorothy Kelly, Bob Kollar, Susan Demko and Vera Freshwater voted for no change. Councilman Fred Carini was absent.

Mr. Sarsfield took the position that the borough would incur legal fees if it continued to object to a lowered assessment. But others favored waiting.

"We let it sit," Mr. Kollar said. "I can't believe that building will sell for less than $1.6 million. Plus, by contract, [the new owner] will have to put in $5 million in repairs."

He was referring to bid documents prepared by the federal Department of Housing and Urban Development that require bidders to agree to do an estimated $5.4 million in building repairs within 24 months.

Bidders also must put down $150,000 in earnest money and agree to enter a 20-year contract with HUD for subsidized housing assistance for low-income families and individuals and two years of rent cap protection for all residents as well as immediate security improvements.

Oral bids for Carnegie Towers are to be received March 16.

"Once this building sells, we'll have a better picture [of its worth]. What's the rush?" said Mrs. Demko, a real estate professional.

In a related matter, a Library Hill resident asked for a recap of a Feb. 20 private meeting of HUD and local officials and elected county, state and government representatives.

Solicitor Joe Lucas said the special session revealed a disconnect between HUD density policy and practice. For example, all but three of Carnegie Towers' 176 units are occupied by Section 8 recipients, a density level that is well above the department's accepted guidelines.

"They're contradicting their own policy," Mr. Lucas said.

When the building opened in the early 1970s, 55 units were marked for federal subsidy for low- and moderate-income residents.

When the current owner remortgaged the facility with HUD in the early 1990s, a 50-year land-use agreement was enacted. However, Mr. Lucas said, HUD would give up the land-use agreement in exchange for a 20-year extension of its contract as a public housing high-rise with the new owner.

Officials expressed hope that U.S. Rep. Tim Murphy, R-Upper St. Clair, who attended the Feb. 20 meeting, might be able to get a lower density of Section 8 tenants in the building.

They also noted that recent attention to the proposed sale of Carnegie Towers was what prompted HUD to demand security improvements and postpone the oral bid date to March 16.