Council committee backs $1.2 million transfer to fund grants for Allentown nonprofits

ALLENTOWN, Pa. — Allentown nonprofits soon could split more than $1 million in grants from the city.

An Allentown City Council committee on Wednesday supported a measure that would give administration officials $1.2 million of the city’s remaining funds from the American Rescue Plan Act to supplement revenues lost during the coronavirus pandemic.

If that’s approved by the full council next week, the city then would put an equal amount of money into a “Community Reinvestment Fund” for grants to nonprofits throughout Allentown.

That transfer would remove all federal deadlines and restrictions on how to spend the ARPA money.

Allentown can be much more flexible with how it distributes non-ARPA money, and more nonprofits would qualify after federal restrictions are removed, according to city officials.

ARPA funds can only be used for specific reasons that can be tied to the COVID-19 pandemic. That funding also comes with many restrictions and a looming end-of-year deadline to allocate all funds.

Poised to launch the fund

Approving the $1.2 million transfer is the last legislative action council must take to establish the program, city Community and Economic Development Director Vicky Kistler said.

Kistler's department will oversee the Community Reinvestments program, with staff working to finalize an application process for local nonprofits.

This month, council looked set to spend the $1.2 million in federal pandemic-relief funding to improve infrastructure and implement recommendations from an ongoing study of housing in Allentown.

Council members Daryl Hendricks, Candida Affa and Ed Zucal put forward a resolution April 3 that also aimed to use any leftover ARPA funds to offset a tax increase that Mayor Matt Tuerk is expected to push for in next year’s budget.

But council changed courses during that meeting and now looks poised to launch the Community Reinvestment Fund at its May 1 meeting.