(The latest in a series of posts on Neighborhoods and Affordable Housing and Southside)

Anna Smith is a life-long Southside resident and Director of the Community Action Development Corporation of Bethlehem, a non-profit dedicated to improving the quality of life in south Bethlehem by fostering economic opportunity, promoting community development, and empowering residents to actively participate in the decision-making process regarding the future of our diverse community.

Peter:

Funny you should ask–I just wrote this up last week but hadn’t sent it in just yet . . . Here’s what I’ve got to start the conversation:

What is “affordable housing”?

Affordable housing, or “workforce housing,” is a big topic in the Lehigh Valley these days. We’re regularly told that the Lehigh Valley is experiencing an “affordable housing crisis,” but what does that mean? For many, a lack of affordable housing is interpreted as an increase in the number of people on the brink of homelessness, or another way of saying poverty. In order to effectively address the crisis, however, we need to agree on definitions—and by definition, affordability is much bigger issue than its connotations would lead us to believe.

According to the US Department of Housing and Urban Development (HUD), “affordable” housing means that a family is spending 30% or less of their income on housing. This number was determined arbitrarily but continues to be the general standard for affordability that is used by the federal government and those who receive their funding subsidies. If you live in public housing or receive a Section 8 voucher, you are typically asked to pay 30% of your income in rent.

When we talk about rental affordability for a particular region, such as the Lehigh Valley, we can use HUD’s calculation of “Fair Market Rent” to guide our understanding of what the government considers a “reasonable” amount for a landlord to charge a tenant, given local market conditions. Naturally, Fair Market Rent varies based on the size of the apartment or house in question and the federal government updates the threshold yearly.

So what does this all mean for the Lehigh Valley?

In our metropolitan area, Fair Market Rent for a three-bedroom house or apartment is currently $1,464. This amount increased by 8% in the past year—if only income was increasing at the same rate! But let’s break this down into more meaningful terms. How much money do I need to make to be able to afford that three-bedroom house? If we use the HUD standard, I need to earn $54,080 a year. I have an Ivy League Master’s Degree and I lead a non-profit organization, and I don’t make that much money. In order to afford that three-bedroom house in the Lehigh Valley, I need a second income.

Affordability concerns are not restricted to families living in poverty; as rental prices increase far more rapidly than incomes, more and more of our families become “cost-burdened”—in HUD lingo, these families pay more than 30% of their income toward rent. But what about those families on the lower end of the earnings spectrum? If you make minimum wage ($7.25 an hour), you need to work 87 hours a week to afford a one-bedroom apartment, 111 hours a week to afford a two-bedroom house, and 143 hours a week to afford that three-bedroom home. For a family with two parents working minimum wage jobs, that’s 71.5 hours a week each to afford a “fair” rental price for a three-bedroom house in our community. For more details on Lehigh Valley wages and affordability, visit the National Low Income Housing Coalition’s Out of Reach 2019 report and select the Allentown-Bethlehem-Easton MSA.

In south Bethlehem, where 67% of households rent their homes, affordable rentals are a major priority. However, many affordable housing programs focus on homeownership. What does affordability for homebuyers mean locally? HUD prioritizes spending on homeowners that have “low- to moderate-incomes,” which means families with an annual income that is 80% or less of the Area Median Income, based on the size of the family. In the Lehigh Valley, a four-person family that would qualify for HUD-funded affordable homeownership programs would have an income of $62,700 or less. Far from poverty-wages, affordable homeownership opportunities target a substantial portion of our professional workforce (which is why many advocates have switched from the term “affordable” to “workforce” housing—although that term is also imperfect, since it excludes those who may not be in the workforce).

When we speak about an affordable housing crisis in our community, we are talking about families with two incomes, single-earner families, young professionals, individuals on fixed incomes, and elderly adults who cannot afford to live in our communities, and who are making impossible choices between paying their rent/mortgage or paying for healthcare or food, saving for the future, or paying off student loans, among many other priorities. We’re talking about a significant percentage of our neighbors, co-workers, family and friends who have spent their entire lives in a community and who are now unable to envision a sustainable future there. The next logical questions are: what has caused this crisis, and what can we do to mitigate its impact on our community? I’ll save my thoughts on that for a future post, but I’ll throw out my conclusion now: there is no simple explanation and no simple solution, alas!

Anna

Lots to chew on here!

(The latest in a series of posts on the Southside and Neighborhoods)

Anna Smith is a life-long Southside resident and Director of the Community Action Development Corporation of Bethlehem, a non-profit dedicated to improving the quality of life in south Bethlehem by fostering economic opportunity, promoting community development, and empowering residents to actively participate in the decision-making process regarding the future of our diverse community.

(The latest in a series of posts on the Southside and Neighborhoods)

The backstory:

Gadfly can’t depend on his followers “following” the streams of his thoughts. So let’s just recall two recent time marks that continue to disturb the calm waters of his retirement.

1) The letter to the Mayor and City Council about the impact of “progress” on the Southside from the South Bethlehem Historical Society delivered by president Lou James at the May 22 Council meeting.

2) Councilwoman Negron’s emotionally powerful response to that letter at the June 4 Council meeting in which one of the two problems she identified was lack of affordable housing on the Southside.

Here in full is the Mayor’s June 12 response to SBHS.

Hoping to not sound overly dramatic, Gadfly is starting to sense somewhat of a “crisis” in regard to affordable housing on the Southside.

(Some of you will rightfully say, “where have you been, Gadfly. Get your head out from under your wing.”)

And wondering why there isn’t something like a “task force” addressing it.

The fact that Councilman Callahan spoke at the June 4 meeting of “teaming” with Councilwoman Negron to encourage developers to provide affordable housing would seem to indicate that there either is no such plan in operation now or that if there is such a plan, it is not widely recognized.

We have just been through an election. And “affordable housing” was liberally sprinkled throughout the campaign rhetoric, always receiving appreciative nods. But no one mentioned a plan. Words are easy. And when the polls close, they can be forgotten.

Gadfly doesn’t remember affordable housing on the Southside making it into the Mayor’s State of the City address.

Affordable housing on the Southside sounds to Gadfly like it should be at the top of somebody’s agenda. Somebody who cares about the character of the Southside. Somebody with power.

Who will mobilize the “wide-range of coordinated strategies implemented simultaneously by public and private actors” that Anna envisions? Who will forge the “public and private partnerships” Dana speaks of?

It sounds like no minor undertaking.

The SBHS letter provided a teachable moment in regard to affordable housing, not just for SBHS but the “us” at large. The Mayor references the Neighborhood Works program but misses the opportunity to provide much more in the way of details that would effectively make the general public feel confident that a (hoping not to be overly dramatic) “crisis” is being addressed.

Gadfly for one would like to hear much more about Neighborhood Works, about the problems the City faces in improving the stock of affordable housing on the Southside,  and about where affordable housing on the Southside sits on the City’s list of things to do.

(The latest in a series of posts on the Southside and Neighborhoods)

Anna Smith is a life-long Southside resident and Director of the Community Action Development Corporation of Bethlehem, a non-profit dedicated to improving the quality of life in south Bethlehem by fostering economic opportunity, promoting community development, and empowering residents to actively participate in the decision-making process regarding the future of our diverse community.

Gadfly:

I’m about as big as Southside fan as they come, and it took me an entire year of searching to buy a home on the Southside. The home we purchased went on the market around 8 pm in the evening, and we were in the house the next day at 5 pm for a showing. When we got there, my realtor found her colleague’s card on the counter, and she called her to find out that the house had already been shown to an investor interested in renting to students. My realtor talked her colleague into talking her client out of purchasing the home, and we put in a bid by 11 pm that evening. We had already lost out to cash buyers on a home in Fountain Hill and another in West Bethlehem, so we knew we had to act quickly . . . Two homes in south Bethlehem that we were interested in purchasing never went on the market and were snapped up by investors before we could even put in a bid.

Some of the trends are national (see: https://www.nytimes.com/interactive/2019/06/20/business/economy/starter-homes-investors.html?mtrref=www.google.com), but many of the the unique characteristics in the Southside housing market are creating an increasingly untenable situation for families who would like to own homes here . . . Meanwhile, renters (67% of Southside families) deal with low supply and high demand, leading to high rents, poor conditions, and increased discrimination. While I wish there were a clear solution, altering the market is challenging; the best alternative (that I see) is a wide-range of coordinated strategies implemented simultaneously by public and private actors. No single policy or program can do it all!

Anna

See Dana Grubb’s similar thoughts.

The NYT article is frighteningly fascinating . . .

(The latest in a series of posts on the Southside and Neighborhoods)

Olga Negron is a Bethlehem City Councilwoman.

Gadfly:

ref Judy Parr’s post

That’s the Southside reality, the reality that some think that by just “covering their eyes with one hand” no one else will see. It’s happening! Current longtime owner occupied are being chased out and families interested in buying can’t compete with developers. Needless is to say: sad, sad, sad . . . I REST MY CASE . . .

Olga

(The latest in a series of posts on the Southside and Neighborhoods)

Judy Parr is a lifelong resident of Bethlehem.

Gadfly:

A young man I know is employed at Lehigh and wanted to buy a house on the south side. Lehigh offers grants to employees who buy within its catchment area. Despite this, and despite almost a year of looking, he gave up and moved to the other side of route 22. He couldn’t compete with the professional property buyers. He made an offer of asking price on one house and was beat out by someone who offered $20K less than that but who could pay cash. Here was someone who wanted to buy near work, work encouraged him to do so, and he just couldn’t get a foothold.

Judy

(Conclusion of a 5-part series of posts on the Southside by Anna Smith)

Anna Smith is a life-long Southside resident and Director of the Community Action Development Corporation of Bethlehem, a non-profit dedicated to improving the quality of life in south Bethlehem by fostering economic opportunity, promoting community development, and empowering residents to actively participate in the decision-making process regarding the future of our diverse community.

Gadfly:

The Southside is far from a monolith, and I moved a mile across town this past winter. I’m not sure what my neighborhood’s challenges and opportunities are quite yet, but I’m starting to get a feel for my new community. I look forward to continuing conversations about my neighbors’ hopes and fears for their community over the backyard fence and on nightly dog walks on the eastern side of south Bethlehem.

I bet that housing affordability will be a big one—my mortgage payment is a lot cheaper than what I paid in rent for a much smaller and more run-down place on the Southside. Rental prices are spiraling upward, and there isn’t nearly enough affordable, quality housing to go around. It seems to me that neighborhood change is accelerating these challenges, and the stories I hear from residents on a daily basis illustrate the human impact of our affordable housing crisis. What do we do about it? As always, my inclination is start by listening.

There are no simple or straightforward answers when it comes to dealing with neighborhood change. But as it continues, here are a few principles that I’ll be keeping in mind:

1. The Southside is a unique, diverse community with individuals who have a range of perspectives on any issue—any attempt to suggest otherwise is disrespectful to the experience and agency of those who call our community home. All have the right to be heard.
2. The best ideas usually come from those who have personal experience with the topic at hand. If they are not at the table, then we should stop discussion until they are and do what it takes to make participation easy—even if it means taking a step back or down.
3. Southside Bethlehem has always changed and will continue to change. However, the inevitability of change does not mean we have to accept all changes as inevitable.
4. Deficit-based thinking leads to missed opportunities, or worse, can lead to the accidental destruction of assets. If we can identify what is great about our neighborhoods, we can preserve it and use it as inspiration for future development. Always start with assets.

It may be hard to believe, but former Southsider and folk singer John Gorka wrote this song about south Bethlehem in 1991. Concerns about neighborhood change are hardly new to the Southside and are indicative of a deep sense of commitment to a community. The least we can do, and the best place for any of us to start, is to listen to them.

(Fourth in a 5-part series of posts on the Southside by Anna Smith)

Anna Smith is a life-long Southside resident and Director of the Community Action Development Corporation of Bethlehem, a non-profit dedicated to improving the quality of life in south Bethlehem by fostering economic opportunity, promoting community development, and empowering residents to actively participate in the decision-making process regarding the future of our diverse community.

Gadfly:

Campus-community tensions are an inevitable component of any college town. South Bethlehem and Lehigh are no exception to the rule (if you can find an exception anywhere, I’d love to hear about it!). Once again, your perspective depends on your location (in this case, physical location matters), and your frame of reference. Here are a few of the things I’m thinking about these days.

Going back at least a decade, the expansion in off-campus housing for Lehigh University students drastically changed the face of Fifth Street, Hillside Ave, Birkel Avenue, and Montclair Avenue. Once home to families and homeowners, portions of these streets are now almost exclusively student housing. This transition was painful for the remaining homeowners who feel that the community where they bought their homes has disappeared. They can probably sell their homes for more money now, but the emotional component of losing a neighborhood has to be recognized, and we can’t deny that the look and feel of a community has value for those that call it home. Backyards once home to meticulously tended rose gardens have been converted to parking lots. Remnants of student parties are piled high on trash day, and old couches continue to appear on front porch littered with beer bottles. Neighbors who have witnessed the transition from Bethlehem Steel retirees to students are entitled to their frustration. Not all students are bad neighbors, but that’s not the point.

Like development, however, the student housing expansion did not occur in a vacuum. Without student housing, what would have happened to these properties? Overall economic trends in south Bethlehem and similar deindustrializing communities would suggest that many of these properties would not have been purchased by homeowners following the relocation of their original owners. The neighborhood would have experienced change with or without students—what that change would have looked like is difficult to say, and value judgments are beyond the scope of this discussion. However, the lack of a resident voice—the lack of choices—in what happened to these neighborhoods was enough to create a sense of impotence among those left behind. That frustration can be difficult to understand for those focused solely on the economics of the situation, but taking some time to listen to the stories of our neighbors brings the aches and pains of neighborhood change into view.

For those living on the outskirts of the student neighborhoods, the student housing discussion is quite different. Give them Birkel and Fifth, my former neighbors on Carlton plead; just don’t let them take over my neighborhood. The students are generally fine people, but they just have different hours and lifestyles that don’t mesh well with raising a toddler. Doesn’t it make more sense to concentrate the students close to one another and to campus? What family wants to live across the street from a student dorm, anyway? The conversion of single-family homes to student housing feels threatening to residents on the outskirts of predominantly student neighborhoods who are watching their blocks change more rapidly than they ever had before. What will they do if they are the last homeowners on the only block they have known for the last 50 years?

Anna

(Third in a 5-part series of posts on the Southside by Anna Smith)

Anna Smith is a life-long Southside resident and Director of the Community Action Development Corporation of Bethlehem, a non-profit dedicated to improving the quality of life in south Bethlehem by fostering economic opportunity, promoting community development, and empowering residents to actively participate in the decision-making process regarding the future of our diverse community.

Gadfly:

Instead of starting with nothing, why don’t we start with something? Community-driven, asset-based development is an alternative approach that some community organizations have taken in south Bethlehem, and that can be applied to any potential development project. Working with residents and other stakeholders to identify a neighborhood’s strengths and assets and then creating a plan for development that builds off those strengths ensures that development adds to a neighborhood’s character without erasing the elements that attracted development in the first place.

A classic example is the South Bethlehem Greenway—a defunct rail line was converted into a community park that connects south Bethlehem commercial districts, improving walkability in an already walkable community.

On Hayes Street, the historic architecture of St. Stanislaus church was adapted into a multi-purpose space for the Southside Lofts affordable apartment community.

In both examples, a community need or challenge was identified and a strategy was developed to address that challenge by building off existing assets.

This approach brings its own challenges, and no development project will ever be supported by everyone. However, making an effort to engage community members tends to make for a better project in the end.

Anna