Lehigh Valley receiving funding for mixed residential-commercial projects

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Northampton is among the seven Pennsylvania counties receiving funding for mixed residential-commercial projects, the Pennsylvania Housing Finance Agency (PHFA) announced.

The seven projects will be awarded $4.7 million for the construction or rehabilitation of mixed-used developments. According to a release, the funding was raised through the sale of tax credits under the Mixed-Use Development Tax Credit Program, the proceeds of which are being used to fund the work of the Community Revitalization Fund Program.

The program’s goal is to stimulate high-impact neighborhood revitalization projects around the state. This round of funding is prioritizing applications from smaller cities and communities, including third-class cities, per the release.

“We anticipate the projects funded today will produce 62 new or rehabilitated residential units and 18,065 square feet of commercial-retail space,” PHFA Executive Director and CEO Robin Wiessmann said in a release. “Four of the seven projects receiving funding are located in third-class cities, where they can play a major role in stimulating economic growth and revitalization. The combination of housing and commercial space meets important community needs and can provide a beneficial spark to business activity.”

In Northampton County, the Redevelopment Authority of the City of Bethlehem is receiving $800,000 for Blight Remediation – Fourth Street.

The PHFA administers the Mixed-Use Development Tax Credit Program, and the selected projects were approved by the agency’s board of directors. The program was created as part of Pennsylvania’s fiscal year 2016 budget. PHFA is allocated $4.5 million in credits annually to sell to generate community revitalization capital.

The Community Revitalization Fund Program seeks to expand or rehabilitate affordable housing coupled with retail/commercial space to promote community revitalization, especially in those parts of the state that are struggling economically. The term “mixed-use” for these projects refers to buildings that combine both commercial/retail and residential space.

The application of funding through the Community Revitalization Fund Program can be used in several ways to address the program’s objectives. The dollars generated can fund the rehabilitation of older or underutilized buildings that can then help promote community development. Those buildings can be restored for commercial use and to provide affordable housing.

The PHFA works to provide affordable homeownership and rental housing options for older adults, low- and moderate-income families, and people with special housing needs.