An East Pittsburgh public housing development has been awarded $4.4 million in federal stimulus funding for "green" renovations, federal and local officials said today.

U.S. Sen. Arlen Specter and Department of Housing and Urban Development Secretary Shaun Donovan visited the 94-unit development, Prospect Terrace, to announce the grant, which will pay for a geothermal water system that could cut energy costs as much as 50 percent.

"Prospect Terrace will be a model for green public housing," Mr. Donovan said. "These are smart investments that will save the taxpayer money over the long term."

The money comes from the $787 billion economic stimulus package approved by Congress and President Obama this year. It allocates $4 billion for public housing nationwide, including $600 million in competitive grants for environmentally friendly projects.

The Allegheny County Housing Authority already has had success with a geothermal water system created two years ago for Dalton's Edge, a housing facility for senior citizens in Brackenridge and Tarentum, where energy costs have fallen as much as 70 percent.

The total cost for the Prospect Terrace project will be $7.6 million, with the remainder coming from county funds. The project includes roofs with better insulation, new windows and "Energy Star"-rated lighting and appliances.

Construction is slated to begin in March and likely will take 18 to 24 months, bringing as many as 175 construction jobs, according to Frank Aggazio, executive director of the housing authority.

The geothermal system involves the digging of dozens of wells about 500 feet into the ground and a series of copper tubes that pull heat from the ground during the winter and send heat back into the ground during the summer, moderating the temperature in the housing units.

Mr. Donovan said the housing authority is doing "remarkable" work.

His agency also is funding two $750,000 projects for handicap accessibility at housing in Clairton and West View.

Prospect Terrace, built in 1965, has been in need of major renovations for years, residents say.

"It's going to give the community pride," said Vera Kelly, president of the resident's council.

More details in tomorrow's Pittsburgh Post-Gazette.

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