State Sen. Lisa Boscola and State Rep. Steve Samuelson announced May 20 that they have secured $928,623 in state funding for the Gateway on Fourth project, a new construction mixed-income and mixed-use development consisting of 120 housing units and commercial space across two buildings.

“Accessible and affordable housing has become a great concern for more and more families and the demand throughout the Lehigh Valley has been far outpacing supply,” Sen. Boscola stated. “The City of Bethlehem recognizes the need to address this housing shortage and this partnership with the Commonwealth will bring much needed housing opportunities at South Bethlehem’s eastern gateway.”

“Gateway on Fourth is a significant project to increase affordable housing options in our community,” said Rep. Samuelson. “The city has led the way, involved the community and built a partnership which will ultimately bring 120 new mixed-use housing units to the South Side. I was glad to work with Sen. Boscola to secure state funding to help bring this project to reality.”

“By bringing together a broad range of community partners with collaboration, passion, and a sophisticated plan, we are able to make real progress on affordable housing in Bethlehem,” Bethlehem Mayor J. William Reynolds said. “A transformative 120-unit mixed-income housing project in South Bethlehem continues to move forward, thanks to the generous $4 million contribution of land from Lehigh Valley Industrial Park and the support our State Sen. Lisa Boscola and Rep. Steve Samuelson in recently securing $500,000 from the Commonwealth’s Redevelopment Assistance Capital Program and $428,000 from the Pennsylvania Local Share Account for the project. The Eastern Gateway development by Pennrose LLP is one of many housing projects and initiatives we are working on together with community nonprofits, the private sector, local institutions, and other governmental partners to help provide or maintain housing that is affordable and attainable here in Bethlehem.”

Bethlehem has rapidly lost much of its naturally occurring affordable housing stock, seeing a 40 percent increase in rental costs since the onset of the pandemic. With 45 percent of renters cost-burdened, one in five extremely cost-burdened, there is a significant need for a greater supply of affordable housing.

The Gateway on Fourth development will help address the city’s housing affordability crisis by increasing the supply of deeply affordable housing at south Bethlehem’s eastern gateway. The commercial space will also contribute to the revitalization of South Bethlehem, spur investment along the main street and into the neighborhood, and further enhance economic opportunities and development.

The state funding for the Gateway on Fourth project will be through a $500,000 Redevelopment Assistance Capital Program grant and $428,623 in funding through the Local Share Account program.

The Redevelopment Assistance Capital Program is used for the acquisition and construction of regional economic, cultural, civic, recreational and historical improvement projects. Qualifying projects have a regional or multi-jurisdictional impact, help create or maintain jobs, and generate economic activity.

The Local Share Accounts were established by the Pennsylvania Race Horse Development and Gaming Act. The funds are generated by the state’s gaming facilities and may be used for economic development, community development and public interest projects in Northampton, Lehigh and Monroe counties and the contiguous counties.

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