BETHLEHEM, Pa. — More than 100 apartments planned to go up along the city’s Fourth Street Eastern Gateway will get some financial backing.
The Local Share Account gaming revenue includes $428,623 — $167,939 from Northampton County and $260,684 from Monroe County — for construction of the Gateway on Fourth mixed-income housing project, according to a memo from city Business Manager Tiffany Wismer.
Such funding is set aside for projects in the public interest, according to the commonwealth.
City Council on July 15 had its first reading on a related budget adjustment ordinance.
The total 120 mixed-income housing units at 1400-1414 E. Fourth St. will include two 44-unit, mid-rise buildings — one at East Fourth and Williams streets, and another closer to the East Fourth Bridge.
It also will include two 16-unit, low-rise buildings along East Fifth.
The corner building is planned to feature 1,200 feet of first-floor commercial space.
The lots now are home to the old Szilagyi Fuels building and another shop to the west, with a fenced-in area to the south — all near the South Bethlehem Greenway and Bethlehem Skateplaza.
If all goes according to plan, construction could begin later next year and be done in 2027.
Lehigh Valley Industrial Park owns the 3.8 acres along East Fourth Street, but seeks to donate the land to Philadelphia developer Pennrose following further site preparations.
Cost estimates
“Affordable housing” refers to a resident spending no more than 30% of his or her income on housing costs.
Paying 30% to 50% is considered “cost burdened,” while more than half of gross pay going to housing expenses is “extremely cost burdened.”
Bethlehem officials say about 8,300 households in the city, 69% of which are renters, are cost burdened.
About 12% of city households fall into the extremely cost burdened range — 78% of those rent.
“There’s very few remedies for affordable housing that we have at the municipal level. But what we can do are projects like these that give actual affordable housing to a community ... that has really beared the brunt of development.”Bethlehem City Councilwoman Rachel Leon
A one-bedroom affordable unit at The Gateway on Fourth could cost $369 to $1,107 using current income figures, according to a statement from the City of Bethlehem.
One-third of the units are to be offered at market rates, with the other two-thirds set aside for families bringing in 20-60% of the area median income of around $62,000.
'Damned if you do, damned if you don't'
The Gateway on Fourth project appears to fall in line with some of the city’s Opening Doors affordable housing strategies.
That includes “Leverage available funding to maximize impact; prioritize resources toward projects that address the greatest housing needs for the greatest number of residents; create an environment that encourages a variety of new housing developments; and work with local and regional housing partners to combine resources and collectively plan future projects.”
"In recent years, housing demand has surged while construction costs skyrocketed, making it cost-prohibitive to add more moderately priced units to meet demand. The challenge to build new, moderately priced housing persists, with interest rates at a 10-year high, persistent labor and material shortages, and limited access to land for new development.”Opening Doors: Strategies to Build Housing Stability in Bethlehem
Analysis as part of Bethlehem’s Opening Doors reads: “In recent years, housing demand has surged while construction costs skyrocketed, making it cost-prohibitive to add more moderately priced units to meet demand.
“The challenge to build new, moderately priced housing persists, with interest rates at a 10-year high, persistent labor and material shortages, and limited access to land for new development.”
As Councilman Bryan Callahan put it, the affordable housing crisis has become a situation of “damned if you do, damned if you don’t” — as the city continues drawing in more residents and development and housing costs never seem to slow up.
“There’s very few remedies for affordable housing that we have at the municipal level,” Councilwoman Rachel Leon said.
“But what we can do are projects like these that give actual affordable housing to a community — to Councilman Callahan’s point — that has really beared the brunt of development.”
