Best known as the home of the Bethlehem Steel Company, Bethlehem, Pennsylvania, is one of three central cities in a two-county area known as the Lehigh Valley. Lehigh and Northampton counties and the cities of Allentown, Easton, and Bethlehem are historically and economically linked. The steel industry was the primary source of the region's past prosperity and is at the root of its recent decline.
For the first year of the Consolidated Plan, Bethlehem is expecting $2.2 million in Community Development Block Grant (CDBG) funds and $592,900 in HOME Investment Partnership Program (HOME) funds. Housing needs will receive the most funding.
The city of Bethlehem solicited information about the area's housing needs from area groups, including private businesses and companies, local agencies, nonprofit organizations, and institutions. This information was used to help develop the Consolidated Plan.
In September 1994 the city held a public hearing on housing and community
development needs. The hearing was advertised in the local newspaper so that as
many people as possible could attend. One month later a summary of the
Consolidated Plan was published in the newspaper, commencing a 30-day public
comment period from October 15 to November 15, 1994. Copies of the plan were
made available to the public at locations around the city.
Bethlehem straddles Lehigh and Northampton Counties, with nearly three-quarters of the city's total 71,248 population residing on the Northampton County side. The city also is divided by the Lehigh River into what is referred to as North Bethlehem and South Bethlehem. About 75 percent of the population resides in North Bethlehem, and almost 80 percent of the housing units are located north of the river.
Although Bethlehem is heavily urbanized, sections of the Lehigh Valley are very rural and lack needed urban infrastructures, such as water and sewer facilities. Consequently, the urban centers have much higher levels of development density than the surrounding areas and contain a much higher number of social services and supportive housing projects than is proportional to their population within the context of the region.
For several generations the steel mills supported the economic life of the community, and Bethlehem was primarily a company town. However, the area economy has undergone a radical shift over the past two decades, and the city's economy is gradually growing more diverse. This diversity has come at a price -- high-paying manufacturing positions are giving way to lower paying service-oriented jobs. Nevertheless, manufacturing companies still employ the largest proportion of area residents.
Bethlehem has two institutions of higher education: Moravian College and Lehigh University. Moravian College is a small, church-oriented liberal arts college, and its campus is comprised of the historic buildings of the original Moravian settlement. Located near the central business district, the campus gives the downtown a unique historic flavor. Lehigh University is a large institution occupying the southern sector of the city. Its student population has overflowed into the neighborhoods of South Bethlehem, creating among the low-income families a high-priced competition for housing in the area.
In 1990 the median family income (MFI) for the city was $35,011, which is
lower than the Allentown-Bethlehem-Easton metropolitan statistical area MFI of
$38,652. Minority families are disproportionately represented among very
low-income households (earning no more than half the median income). Although
minorities are only 17.5 percent of Bethlehem's population, they make up 59
percent of all small very low-income renter families and 75 percent of large
very low-income renter families. Owner occupancy among minorities lags behind
other demographic groups, with only 6 percent of minority households owning
their own homes.
The recent rise in Bethlehem's population has been fueled primarily by the dramatic increase in the minority population. The percentage of white residents fell by 6 percent between 1980 and 1990, while the African-American population increased by 26 percent; the Hispanic population grew by 63 percent; and the number of Native Americans, Asian Americans, and Pacific Islanders more than doubled. Within the city the minority population is concentrated in two geographic areas, Southside and the public housing communities in northeast Bethlehem.
The city's housing stock is varied and generally affordable. Although the overall supply of housing seems to be ample, demand for affordable rental units persists, as evidenced by the waiting lists for public and assisted housing. The demand is particularly acute among larger families. As many as 35 percent of these households experience overcrowding, compared with 4 percent of all renters, and this incidence increases among poorer large families. In 1989 an estimated 21 percent of all owner-occupied and 22 percent of all renter-occupied housing was believed to be substandard. A majority of all units that are substandard are suitable for rehabilitation. Census estimates placed the share of substandard units in Bethlehem's housing stock at 21 percent.
In 1990 owner-occupied units represented 61 percent of the 27,268 occupied housing units in the city, and the vacancy rate was a mere 2 percent. Due to the dramatic rise in home prices in the 1980s throughout the Lehigh Valley, the homeownership rate is below the statewide and regional averages of 70 and 71 percent, respectively. Between 1980 and 1990, the median value of owner-occupied units increased by 132 percent, to $92,800. The price for an attached home peaked in 1989 at $108,400, and the price for a single-family detached home topped out at $184,000 in 1990.
Of the total 16,636 owner-occupied units, 32 percent are low-income households. Of the 10,632 renter-occupied units, nearly one-fourth are publicly owned or assisted. Two-thirds of all rental units are occupied by low-income households. In addition, a significant number of rental units are occupied by college students residing offcampus, who comprise roughly 2 percent of the city population. The rental vacancy rate of 4 percent is consistent with the regional average.
The 1990 median contract rent was $371 for the Northampton County portion of the city and $451 for the Lehigh County portion. These rents are more than double the 1980 median contract rent. In spite of these increases, nearly all of the city's rental units are affordable to households of lower income.
Bethlehem's housing stock can generally be classified as old, with more than 40 percent of the housing stock built prior to 1940 and another 30 percent built between 1940 and 1960. Only 5 percent of the stock was built between 1980 and 1992. Despite its age, most of the city's housing is in good condition. The dense urban pattern of the city will permit only minimal growth, attributable to increased family size or to the development of new housing on a small number of remaining vacant lots.
The incidence of reports of housing problems from lower income households is closely related to the age of the units. About 63 percent of the very low- and other low-income renters live in units constructed prior to 1940, and nearly all of the rental units constructed between 1940 and 1959 are occupied by lower income households. More than two-thirds of extremely low-income (30 percent or less of MFI) renters and owners reported housing problems, including cost burden, overcrowding, or physical inadequacy. In addition, approximately three-fourths of very low-income renters experienced housing problems. Cost burden is the predominant problem among these groups.
Bethlehem is part of a network of shelters, services, and programs serving the homeless that extends throughout Lehigh and Northampton Counties. Persons seeking services or shelter often move freely among the various facilities and communities throughout the Lehigh Valley. Lehigh County has six emergency shelters and Northampton County has four emergency shelters, for a combined sleeping capacity of 378 beds.
The Lehigh Valley Coalition on Affordable Housing annually produces a Lehigh Valley Shelter Census, which provides a profile of homeless individuals and families who received emergency shelter in the Lehigh Valley. These shelters have been operating at or near capacity for years, so the number of people served has not changed from year to year. However, a record of the waiting lists kept by some of the shelters indicates the growing need for shelter in the valley.
In 1992 shelters in the Lehigh Valley provided housing to 651 adults and 1,126 children in 505 families. Most of the families were headed by women, and most of the children were under age 5. One-fourth of the sheltered families reported cost burden and housing problems as the cause of their homelessness, and almost half of all sheltered families were victims of domestic violence. This survey did not count persons who were unsheltered or persons who were living with friends or relatives because they did not have housing of their own.
The Bethlehem Housing Authority owns and operates 1,472 units of public housing and administers 479 Section 8 rental assistance contracts. Most of the Housing Authority's properties are in good condition. There are presently 92 vacancies, largely due to the renovations underway at the Pembroke community. Vacancies that arise due to normal turnover are usually filled quickly. However, the Bethlehem Housing Authority has concluded that the number of handicapped-accessible units available is inadequate. The Pembroke renovations will increase the number of accessible units.
Over the years private nonprofit and for-profit developers have developed housing affordable to and occupied by low-income households in exchange for a variety of forms of project-based assistance. This assistance has included various U.S. Department of Housing and Urban Development (HUD) programs, such as Section 236, Section 221(d)(3), and Section 202. Most recently, the Pennsylvania Housing Finance Agency HOMES program has contributed to the development of affordable rental units. The inventory of assisted housing consists of 17 developments, totaling 1,501 units.
The city of Bethlehem has reviewed its zoning policies, fee requirements, tax structure, and fair housing practices and has found no barriers to affordable housing. However, the following market conditions have been identified as impediments:
Lead paint is typically found in homes that were constructed prior to 1978, since lead was not banned for use in residential paint until after that time. Because most of Bethlehem's housing units are older, the probability of finding lead paint is high.
The city's Bureau of Health identified more than half of the city's housing stock (15,475 units) constructed prior to 1950 that may contain lead. These units housed 3,719 children under age 5. Lead hazards are present in nearly equal numbers throughout the housing cost spectrum.
The city of Bethlehem is host to a majority of the Community Residential Rehabilitation (CRR) homes for persons with mental health problems and Community Living Arrangements (CLA) homes for the mentally retarded. Northampton County has 21 CRR beds in 22 housing units and approximately 19 CLA units in the city. Independent living programs allow adults suffering from mental health problems or mental retardation the option of finding their own housing and getting the support services they require to live independently. Case workers help clients learn basic living skills and provide counseling services. Each of the county offices that work with mental health and mental retardation clients have such programs.
The Area Agency on Aging and the Center for Independent Living through the Homemaker Program provide assistance to persons with mobility or movement impairments and allow them the opportunity for independent living. Services include assistance with bathing, dressing, cooking, cleaning, shopping, and other basic needs.
The areas of priority community development include infrastructure improvements, park and recreational facility upgrades, non-residential historic preservation, and economic development. The issues of accessibility and public service needs also must be addressed.
The city will continue its program to eliminate architectural barriers that limit accessibility for the handicapped. Intersections will be improved with curb cuts and ramps to ensure ease of mobility for elderly and handicapped persons. In addition, other improvements to public facilities will be made as necessary to ensure compliance with the Americans with Disabilities Act.
Existing park and recreational facilities in the Southside neighborhoods need to be improved, as do smaller recreation sites. Such sites need to be upgraded to improve conditions and/or eliminate incidents of vandalism.
The city recognizes the importance of preserving its local heritage and has
delineated a historic district in the center of town. This area is considered a
tourist attraction and is playing a larger role in the city's economic
development strategy. Economic development continues to be an important need for
all sections of the city.
Bethlehem has placed a high priority on remedying physical defects to housing units occupied by low-income renters and homeowners. Activities will include counseling and mortgage assistance for lower income first-time homebuyers, rehabilitation of owner-occupied units and modernization of public housing, support for homeless shelters and transitional housing facilities, and continued administration of tenant-based rental assistance.
Non-Housing community development priorities established in the planning process include:
The city acknowledges that its resources and opportunities for reducing poverty in Bethlehem are "limited." Even while regretting the lack of formal State or Federal mechanisms that would combine case management, social services, job training, and housing assistance, the city is urging local service providers to "confer on the matter and develop local strategies."
Meanwhile, the city will continue its efforts to attract new industry and business investment to the area. Growth in the local economy will mean expanded job opportunities for individuals and families living in poverty.
Under the aegis of the Coalition on Affordable Housing, many county and municipal agencies meet regularly to share ideas and develop strategies for meeting the most urgent housing needs of the region. The goals of the Coalition include fostering intergovernmental cooperation (particularly through financial participation in the emergency shelters by smaller municipalities) and increasing housing opportunities outside the central cities for economically disadvantaged families and persons with special needs. Only when all the municipalities of the region join together can adequate resources be brought to bear on the housing and community development issues identified in this Consolidated Plan.
Housing and community development resources include the Bethlehem Housing Authority, Community Action Committee of the Lehigh Valley, Coalition on Affordable Housing, Bethlehem Redevelopment Authority, Small Business Development Center, banks and savings institutions, private and nonprofit developers, emergency shelters, and county and social service agencies.
The city of Bethlehem is one partner in the large network of organizations that will be needed to address the needs identified in this Consolidated Plan. The participation and cooperation of county government, public and private nonprofit organizations, local authorities, and area businesses are essential. The Bethlehem Redevelopment Authority is a subrecipient of the city for the administration of the owner-occupied housing rehabilitation program. The Authority oversees and provides clerical support to city staff who conduct housing inspections, intake, and income verification. The Bethlehem Housing Authority administers the city's public housing and Section 8 rental assistance programs. Numerous county social service agencies are the link between the provision of housing and the often complex underlying needs of the population that this housing is intended to serve.
In cooperation with the Coalition on Affordable Housing, the city will work
with public agencies providing housing resources, with assisted housing
providers, and with private and public social service organizations to
coordinate housing and service efforts. Through the establishment of Coalition
Task Forces, enhanced coordination between the city and private entities will be
accomplished. Some of these accomplishments may be achieved by improving the
referral system and conducting joint reviews of programs to increase
compatibility and identify shared funding opportunities.
For Fiscal Year 1995, the main CDBG- and HOME-funded activities will consist of citywide housing rehabilitation support, economic development, public services, and infrastructure and public facility improvements. Key programs planned for the first year of the Consolidated Plan include the following:
MAP 2 depicts points of interest and low-moderate income areas.
MAP 3 depicts points of interest, low-moderate income areas, and minority concentration levels.
MAP 4 depicts points of interest, low-moderate income areas, and unemployment levels.
MAP 5 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 6 is a map, sectioned by neighborhood, which depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 7 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one of the four neighborhoods indicated in MAP 6.
MAP 8 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within another of the four neighborhoods indicated in MAP 6.
MAP 9 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point; in addition, a table provides information about the project(s).
