ALLENTOWN, Pa. — A simple money-moving measure could breathe new life into a long-stalled affordable housing project in downtown Allentown.
Allentown City Council looks poised to transfer about $2.25 million in unspent federal funding to other accounts.
“We need to build something there. We’re under the gun to develop that property.”Vicky Kistler, Department of Community and Economic Development director
Most of that money is earmarked for Allentown Housing Authority as it works to revive redevelopment on a lot in the 400 block of North Sixth Street where the Charles Becker Funeral Home once operated.
The housing authority is buying the property from Allentown’s Redevelopment Authority for $1. It plans to build eight affordable units there.
A council committee on Wednesday unanimously recommended sending the Allentown Housing Authority more than $1.8 million. That money would fill its funding gap on the Sixth Street project, according to Department of Community and Economic Development Director Vicky Kistler.
About $1.6 million comes from old city accounts that still have small amounts of funding from the U.S. Department of Housing and Urban Development, Kistler said.
“We’re finally going to use this money to develop those eight units."Vicky Kistler, Department of Community and Economic Development director
Spending that money before newer funds is a “housekeeping” measure enables the Sixth Street project and ensures the federal government doesn’t “take [the city’s] money back” for not using it, she said.
“We need to build something there,” Kistler said. “We’re under the gun to develop that property.”
The lot has been “barren” for 10 to 15 years, she said.
“We’re finally going to use this money to develop those eight units,” Kistler said.
