FOR IMMEDIATE RELEASE

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Blight Remediation Funding Awarded to the Bethlehem Redevelopment Authority

$800,000 Awarded for Active Mixed-Use Project in South Bethlehem

 

(BETHLEHEM, PA) A revitalization project that will bring affordable rental units and refreshed commercial space to South Bethlehem was just awarded an $800,000 grant to spur the rehab of a Fourth Street building.

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The Bethlehem Redevelopment Authority (RDA) blight remediation project at 401-403 and 405 E. 4th Street was just one of seven projects across the Commonwealth, and the only project in the Lehigh Valley, funded in the latest round of the Pennsylvania Housing Finance Agency’s Community Revitalization Fund Program (CRFP).

 

Plans call for a mixed-use revitalization of the blighted property into four apartments, ranging from one to three- bedroom units, and a first-floor commercial space. At least three of those units will be affordable to those earning at or below 80% of area median income. In Bethlehem, that is $56,150 for an individual or $80,150 for a family, according to 2025 U.S. Department of Housing and Urban Development 2025 income limits.

 

Working with the City’s Department of Community and Economic Development, the RDA identifies properties that require substantial rehabilitation to again make them marketable in the local economy and which will have a direct and positive impact to the neighborhood in which they are located. The RDA works to transition blighted properties to new owners and investors who have the capacity to complete the reclamation of the structure. A property can be certified as blighted by both the City of Bethlehem Planning Commission and Blighted Property Review Committee. The RDA began acquisition of this property in June 2021 and gained possession and control of the property in November 2023.

 

“I applaud the Redevelopment Authority in continuing to pursue vital restoration efforts in Southside Bethlehem. Whether it's in advancing a safe community, preserving and developing our parks, or furthering economic or affordable housing revitalization, private and public supporters regularly recognize local government agencies within Bethlehem as excellent stewards of public funding and that individuals and organizations located here are committed to supporting enhanced opportunity for all of our residents. This award is a large step toward realizing the future of this corner property and we thank the Pennsylvania Housing Finance Agency for continuing to choose Bethlehem for its thoughtful investment,” said Bethlehem Mayor J. William Reynolds.

 

The PHFA Board approved this funding at its April 10, 2025 meeting. The $4.7 million allocated across the seven projects was raised through the sale of tax credits under the Mixed-Use Development Tax Credit Program, the proceeds of which are used to fund the work of the Community Revitalization Fund Program. The goal of the CRFP is to stimulate high-impact  neighborhood revitalization projects around the state, according to a news release from PHFA. This round of funding prioritized applications from smaller cities and communities, including third-class cities, like Bethlehem.

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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,” according to PHFA.

 

“This is a distinctive property along a main corridor in Southside Bethlehem, and the RDA continues to appreciate the support from our private contributors; public partners, such as the PHFA; and local legislators, including Senator Boscola and Representative Samuelson, in working to transform and redevelop long-standing blighted properties.  Through its rehabilitation, we’ll be able to, again, contribute to the affordable housing supply, while bringing a commercial space back online that can contribute to and service the neighborhood. The RDA remains committed to the Southside neighborhood and in seeking to secure the remainder of the funding to make this project possible,” said RDA Executive Director Sean Ziller.

 

In pursuing and advancing affordable housing and rental opportunities, the RDA works closely with its partners at Community Action Lehigh Valley (CALV) and its subsidiary, Community Action Development Bethlehem (CADB). CADB’s Director, Anna Smith, shared the following regarding the recent notice of award: “We are thrilled to see the rehabilitation of this property in the Southside commercial core moving forward. Our Southside community members have identified the creation of affordable housing through the rehabilitation of blighted properties as one of the highest neighborhood priorities, and this project will expand housing opportunities for Southside families while revitalizing a key block in the Fourth Street small business district. This award reinforces our shared commitment to neighborhood revitalization through community-driven planning processes, and we are grateful for the leadership of the City of Bethlehem and Redevelopment Authority on this project.”

 

The latest award brings the total funding for this project to more than $1.27 million; in total the project is estimated to cost $2.4 million.

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The Mixed-Use Development Tax Credit Program was created as part of the Commonwealth’s fiscal year 2016 budget. PHFA is allocated $4.5 million in credits annually to sell in order to generate community revitalization capital. The agency has been directed by the General Assembly to administer both the tax credit and program components of this initiative. Further information about recent awards and the program can be found here: https://www.phfa.org/news/pressreleases

 

The Redevelopment Authority of Bethlehem is a state-incorporated redevelopment authority located in Bethlehem, Pennsylvania. The RDA was created in 1953 as a government agency with the powers vested by Pennsylvania Urban Redevelopment law.

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