The City of Bethlehem has been awarded $1.45 million to support the conversion of a South Bethlehem apartment building into an 11-unit non-congregate emergency family shelter.

The award is part of $27 million of funding announced June 10, by Pennsylvania Department of Economic Development Secretary Rick Siger to help prevent and address homelessness for individuals and families in 38 counties.

Bethlehem Mayor J. William Reynolds said the state investment closes the city’s funding gap and will allow final design and engineering work to start for a planned family emergency shelter in a Lehigh Conference of Churches’ property at 232-234 West Packer Avenue.

“This investment by Gov. Josh Shapiro’s administration will help bring the Lehigh Valley its first non-congregate family shelter, filling a large void in the region’s emergency sheltering system,” Reynolds said.

“This critical award allows the city to fully fund this project and brings us one step closer to offering families year-round shelter.”

The Conference-owned Packer Avenue property needs significant code repairs for it to be habitable, leading the nonprofit to approach the city in 2023 about donating it for an emergency shelter. The City intends to purchase the property for $1 and complete an extensive renovation to create six one-bedroom family units, five studios and an office for case management. Each unit will have its own private bathroom offering families privacy as they work with case managers to obtain long-term housing.

The city anticipates final design and engineering to take six to eight months and rehabilitation of the building to take about a year. The Lehigh Conference of Churches will then operate the shelter for the city.

“The Lehigh Conference of Churches is elated to partner with the City of Bethlehem in caring for those unhoused in the Lehigh Valley,” said Katie Albarelli, president of Lehigh Conference of Churches’ board of directors. “Few things are as important as providing a home for our sisters and brothers. We rejoice when citizens become neighbors. LCC gives thanks for this civil gesture of grace.”

The City in May of 2024 completed a preliminary engineering and cost analysis on the West Packer Avenue building that revealed a $1.45 million funding gap. The city sought to bridge that by applying to PA DCED for funding in August of 2024. The state on Tuesday announced PA DCED approved $14.6 million through the HOME-American Rescue Plan Non-Congregate Shelter Program (HOME-ARP NCS) program and $12.3 million in funding through the HOME-American Rescue Plan Supportive Services Program (HOME-ARP SS).

Gov. Josh Shapiro and his administration are committed to ensuring everyone in the Commonwealth has access to safe, affordable housing, according to a PA DCED press release. Gov. Shapiro’s 2025-26 budget proposal calls for significant investments to restore and modernize Pennsylvania’s aging housing stock, help first-time homebuyers cover closing costs, and more.

“The Shapiro Administration is committed to ensuring Pennsylvanians have more housing options,” said Secretary Siger. “The funding approved today is just one tool that will allow more individuals and their families to maintain a roof over their heads that they can afford. The funding in the Governor’s proposed budget — coupled with the development of Pennsylvania’s first ever Housing Action plan — will make it even easier for families to stay in their homes or achieve homeownership.”

Bethlehem was the only city awarded funding by PA DCED. The award comes after a yearlong community planning process that resulted in the September 2023 release of Opening Doors: A Strategic Plan to Address Homelessness. The plan identified an urgent need for year-round emergency shelter for both individuals and families as well as a growing need for affordable homes.

It concluded that as a local government Bethlehem is best positioned to make capital investments in sheltering facilities and spearhead the development of affordable homes. Bethlehem City Council has allocated $2 million for a planned 82-bed, low-barrier emergency shelter in partnership with Bethlehem Emergency Sheltering and dedicated $1.4 million in City federal HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) funding for the family sheltering project. Congress included the HOME-ARP program as part of the massive American Rescue Plan passed in March of 2021.