Bethlehem (PA) set to build ‘alley houses’
Partnership to help alleviate affordable housing crisis
By Lindsay Weber The Morning Call
The first new Bethlehem “alley house” is under way, part of a million-dollar partnership between the city of Bethlehem, Lehigh University and local nonprofits to help alleviate the growing affordable housing crisis.
Construction on the very first alley house could begin as soon as this summer.
At a meeting Thursday, officials gathered feedback from about a dozen local residents on the project. Here are answers about the proposal:
What’s an alley house? Why does Bethlehem want to build them?
“Alley houses,” or “accessory dwelling units,” are a type of housing built upon or attached to an existing property. These homes often face an alley, rather than a main thoroughfare, hence the name.
Bethlehem city officials identified building more alley houses as a possible strategy to combat the city’s affordable housing crisis. Average rents in Bethlehem have skyrocketed from $1,200 in 2019 to $1,800 in 2022 for a one-bedroom apartment, and the city’s housing units have a vacancy rate of only 2%.
Lehigh University, which is handling the alley house design and city approval process, has received two grants that total over $1 million from the federal government to begin the planning and construction of these homes.
Several alley houses already exist throughout Bethlehem, but their construction predates the city’s zoning code, which has made them illegal to build without a special zoning variance.
The city is targeting West Bethlehem for the alley house program, because several neighborhoods are built alongside alleys with ample space to build these homes.
How will the program work?
A participating couple have received a zoning variance for a “pilot” alley house to be constructed on their property near the intersection of Broad Street and 15th Avenue. The homeowners who volunteered their property will receive a cut of the rent once construction is complete, according to city officials.
Rent on the alley house will be designated “affordable,” meaning it will cost no more than 30% of the renter’s total income, and a prospective tenant could qualify if they make less than 80% of the area median income.
“We will be looking for someone that probably already lives in West Bethlehem, maybe in the same neighborhood, has kids in a local school and who is really struggling to stay in that home because they might be paying $1,800 in rent,” said Anna Smith, director of Community Action Bethlehem, which is helping to oversee the project.
The alley house project is a partnership between the city, Lehigh University, and two nonprofits, Community Action Lehigh Valley and New Bethany.
Community Action, which is handling construction, is looking to begin building the Broad Street alley house this summer, and if the “pilot” is successful, it could construct more in West Bethlehem. The grant provides enough funding for three to four new alley houses.
The city also is considering an amendment to the zoning code that would allow alley houses to be built “by right” in some areas, meaning a special variance would no longer be needed. If the city approved such a zoning change, which would likely take several years to take effect, around 15 to 30 new alley houses could be built throughout the city in five years.
What do neighbors think?
Bill Scheirer, a West Bethlehem resident, said he thought that alley houses could cause “conflicts” between neighbors. He suggested the city allow direct neighbors to “vote” on whether or not they would like to see a new alley house built in their neighborhood.
“There’s going to be cases where someone says, ‘I want to put up an alley house,’ but neighbors say, ‘We don’t want to lose that much space,'” Scheirer said.
Mary Toulouse, another West Bethlehem neighbor, said she thought city officials were taking a thoughtful, measured approach to building alley housing.
“It’s important as we are increasing density that people live in dignity, not tenements,” Toulouse said. “And I think that is what they are trying to do.”
Reporter Lindsay Weber can be reached at Liweber@mcall.com.
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