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Bethlehem's LIHTC Program: Shaping Affordable Housing in a Post-Steel City
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Bethlehem, Pennsylvania, formerly the headquarters of Bethlehem Steel, maintains a substantial Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. The city's LIHTC program has produced 547 total units, with 392 designated as low-income units. This affordable housing stock represents approximately 1.81% of Bethlehem's estimated 30,212 housing units.
The LIHTC program in Bethlehem has received $3,982,806 in project tax credits. With approximately 21 projects, this equates to an average of $189,657 in federal funding per project, or $7,281 per unit. Bethlehem's allocation constitutes 0.67% of Pennsylvania's total LIHTC funding.
Bethlehem's affordable housing development through LIHTC spans nearly three decades. The earliest projects, including Atlantic Apts and Broad & High Streets, were completed in 1987. The most recent project, South Side Lofts, was finalized in 2014. The 1980s witnessed the highest level of affordable housing activity, with multiple projects completed during this period.
The LIHTC-funded housing inventory in Bethlehem comprises a diverse range of unit types. There are 77 efficiencies, 243 one-bedroom units, 124 two-bedroom units, and 80 three-bedroom units. This distribution indicates a focus on accommodating smaller households and families.
Bethlehem's population has remained relatively stable over the past decade, fluctuating between 74,000 and 79,000 residents. The median income has increased from $45,263 in 2013 to $61,786 in 2022. This rise in median income may affect the demand for affordable housing.
Racial demographics in Bethlehem have shifted slightly. The Hispanic population grew from 26% in 2013 to 29% in 2022, while the white population decreased from 65% to 56% during the same period. These changes in racial composition may influence the need for culturally sensitive affordable housing options.
No new LIHTC projects have been recorded in Bethlehem since 2014. This could be attributed to various factors, including changes in local housing needs, funding priorities, or economic conditions.
Bethlehem's LIHTC-funded affordable housing inventory represents a small but significant portion of the city's housing stock. The program has provided a diverse range of unit types, potentially catering to various household sizes. While the city has experienced a steady increase in median income over the past decade, demographic shifts suggest an ongoing need for affordable housing options. The absence of new LIHTC projects since 2014 may warrant further investigation into current affordable housing needs and strategies in Bethlehem.
