McKeesport is closer to opening shop for a federally funded program to prevent homelessness, with council last night approving a motion to allow the city to enter into contracts with agencies that will provide the services.

Earlier this year, city leaders learned they would receive a half-million dollars in stimulus money to start its Homelessness Prevention and Rapid Re-Housing program. Only two other local agencies -- Allegheny County and the City of Pittsburgh -- received money.

The program would help people who recently lost their jobs by providing funds to pay utilities, rent, moving expenses and other costs, said Bethany Budd Bauer, McKeesport's Community Development Director. But there are strict income requirements and the program is not for the chronically homeless.

Council unanimously approved motions to enter into contracts with the McKeesport Helathier Partnership Referral Center and the McKeesport Housing Authority to provide services. Ms. Bauer said that nearly everything is in place to start the program, but the city is still waiting on the $500,000 in federal money.

Also at last night's meeting, city administrator Dennis Pittman expressed anxiety over how the McKeesport is going to pay its minimum municipal obligation to its pension providers. Because of the decline in the stock market, the city has seen a dramatic increase in the amount the state is requiring it to pay into their pension funds to make up for the loss on investment returns.

McKeesport budgeted $927,000 for its MMO this year, which is what it paid last year. But the MMO increased to $1.3 million.

Now, said Mr. Pittman, the city is scrambling to find the nearly $400,000 it will need to make its obligation. He said he plans to lean harder on homeowners with delinquent real estate taxes to find the extra dollars.

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