ALLENTOWN, Pa. — An Allentown City Council committee on Wednesday threw its full support behind a proposed affordable housing project.
Council’s community and economic development committee recommended the city spend $1 million of its federal funding from the American Rescue Plan Act to help the project get off the ground.
- Allentown officials are looking to spend up to $1.8 million in federal funding to support an affordable housing project
- Developers are planning to build 49 affordable apartments for seniors and residents with intellectual and developmental disabilities
- Construction is expected to start in June if funding is secured
HDC MidAtlantic and the Alliance for Building Communities have proposed a four-story complex at 1528 W. Hamilton St. for residents 55 and older and people with disabilities.
The developers plan to build 49 affordable apartments, with 24 units available to residents who earn less than 60 percent of the area’s median income, 20 units for those earning less than 50 percent, and five units for those earning less than 20 percent.
Ten units would be set aside for residents with intellectual and developmental disabilities.
Zoning officials approved the affordable housing project in January. Members of the Community Music School Lehigh Valley & Berks, which sits on the same lot as the proposed apartment building, had voiced concerns about the project’s impact on parking in the area.
“Housing is a human right. We have an affordable housing crisis in the city of Allentown.”Ce-Ce Gerlach, Allentown City Council member
Developers are hoping to break ground on the project this summer. But they’re facing a $1.6 million funding shortfall after they said initial cost projections were driven up by the COVID-19 pandemic, labor shortages, interest rate hikes and other issues.
Committee members urged the full council to transfer $1 million of the city’s ARPA funding to the project, and city officials expect to invest an additional $850,000 in other federal funding Allentown receives.
Those investments are necessary for developers to close on the property in May, with construction to start the next month, according to HDC’s Ben Van Couvering.
“We are extremely happy with Allentown’s willingness to work with us for the funding that they have put in here,” HDC Senior Vice President Claude Hicks said.
The project has also received about $1.2 million in low-income housing tax credits from the Pennsylvania Housing Finance Agency.
Developers are set to spend about $16 million on the project, which would generate double or triple that amount in economic activity, Hicks said. They are looking to hire local contractors, as well as minority- and women-owned businesses, during construction, he said.
‘Housing is a human right’
Council member Ce-Ce Gerlach, who serves on the community and economic development committee, said she hopes the $1 million transfer represents the start of significant investments in affordable housing projects by the city.
“Housing is a human right,” Gerlach said. “We have an affordable housing crisis in the city of Allentown.”
Offering “safe, secure, affordable housing” options to seniors and people with intellectual disabilities is a “matter of safety,” Gerlach said.
“Who doesn’t want their grandmother to be able to live in a safe, affordable place? That’s what this is,” Gerlach said. “I look forward to spending more money on affordable housing, especially ARPA money, because … it’s such a basic, fundamental need. Everyone needs a place to live.”
Archer Music Hall moves forward
The Allentown City Council committee on Wednesday also recommended allowing entertainment venues to display LED signs. That change is part of the approval process for City Center Investment’s proposed Archer Music Hall.
The developer has said the 31,000-square-foot music hall at 935-939 Hamilton St. could accommodate up to 1,800 people.
City Center plans for The Archer to host three or four concerts by national acts every week.
