Allentown developer focuses on low-income housing opportunities

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Cortex Residential, a roughly 10-year-old affordable housing developer, has just received approval for what will be its second ground up affordable housing project. 

The company’s first new construction project, Walnut Square, will soon be breaking ground at 8th and Walnut Streets in the city. 

The newly approved project, Urban Place Apartments, will be built on a parking lot across from the Lehigh County Government Center at South Seventh and Walnut Streets. 

It will bring 33 dedicated, deed restricted apartment units to the downtown. 

Jonathan Strauss, co-founder and partner of Cortex Residential, said the project will feature one-, two- and three-bedroom units. In fact, he said, 10 of the units will be three-bedroom units, which he said are rare in urban apartment complexes. 

“Our focus here is family and affordable housing,” Strauss said. “This is rare, especially in the affordable housing space.” 

He said by making family-sized apartments available to the low-income community, the project will add stable housing that will improve the quality of life for these families. 

The project itself is a new venture. His company has been specializing in renovating and repurposing existing properties into affordable housing using tax credits and other incentives to attract private investors to the projects, but he said creating new properties is important. 

Strauss said the company is mission driven, but for profit and he believes having private, for-profit investors in the market is an important component of creating affordable housing and battling what he described as a housing crisis both locally and nationally. 

“The root of the housing affordability crisis—both nationally and locally—lies in a fundamental lack of supply. Addressing this challenge requires strong partnerships between the private sector, -which builds housing, and the public sector, which can create policies and opportunities to attract both talent and private capital.” 

Before starting Cortex Residential, Strauss said he worked with J.B. Reilly at City Center and saw that while building market rate and luxury apartments was very important to address the housing crisis, he could fill in the gaps with quality affordable housing. 

“We believe in prioritizing large-scale development of mixed-income communities that are not only affordable but also well-integrated into the fabric of our cities,” Strauss said. “This means leveraging innovative financing, ensuring regulatory flexibility, and developing partnerships that allow us to build faster and smarter.” 

The apartments will be rented out to HUD-eligible individuals and families based on federal guidelines, which range from 20% to 60% of the median local income. Rents will also be based on HUD guidelines. 

That means an individual earning around $13,000 a year can qualify and a family of five can earn up to $63,000 and still qualify. 

Strauss noted that there are many other companies involved in the project. 

Quandel Construction will be the construction manager. KMA Design Studio is the architect on the project and Bohler Engineering is handling the engineering work for Urban Place Apartments. 

Strauss said his fast-growing company will continue to work to develop more properties, both new and redeveloped. 

“Our core focus is the HUD program, low income and tax credit funded,” he said. 

Strauss said what Cortex brings to the community and investors is its experience and expertise in navigating the sometimes-complicated world of affordable housing compliance and the more projects they take on the greater their knowledge base and expertise will be. 

But, he said, he always remembers the core mission of what Cortex is doing. 

“Housing is more than just shelter—it’s a cornerstone of sustainable communities and creates opportunities that drive both economic and social value for everyone,” he said.