ALLENTOWN, Pa. — Lehigh County Commissioners on Wednesday authorized a federal grant to be passed through to the Valley Housing Development Corporation to build up to four affordable rental units.
The federal HOME investment partnership program will give $400,000 to Valley Housing Development Corporation to assist with its development of the huts at the Mill II development in Fountain Hill.
The building at 946 Seneca St. contains county-recognized subsidized housing for those aged 55 and older.
"There's a dearth, a huge dearth, of housing, So every unit is helpful."
Lehigh County Commissioner John Irons
According to program details, participating jurisdictions match funds spent with 25 cents for each dollar spent.
The housing would be for those with "extremely low incomes," according to the county.
The U.S. Department of Housing and Urban Development states that the maximum rents for HOME-supported projects are to be the lesser of the fair market rent for existing comparable housing units in the area or a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the area's median income, with adjustments based on the number of bedrooms.
Fair market rents are established by the department each year for the Section 8 housing program.
Current fair market rent for the Allentown-Bethlehem-Easton metro is listed at $1,137 for a one-bedroom apartment for 2024.
According to county officials, the money will be used to convert underutilized space currently used for maintenance, storage and offices into a two-bedroom, a three-bedroom and likely two studio apartments with a shared bathroom.
Alternatively, the two studios may be made into a one-bedroom apartment.
"There's a dearth, a huge dearth, of housing," Lehigh County Commissioner Jon Irons said. "So every unit is helpful."
Commissioner Geoff Brace said that while the number of units is not a lot, the range of options addresses a variety of needs while maximizing square footage being used.
Final approval for the bill transferring the funds will come before the board of commissioners on June 26.