BETHLEHEM, Pa. – Bethlehem City Council approved a $12,000 professional services contract with a New York-based nonprofit to assist the city in designing and launching a revolving loan fund to support mixed-income housing development.
The initiative is part of Bethlehem’s affordable housing strategy, “Opening Doors: Strategies to Build Housing Stability in Bethlehem,” which identifies the creation of a revolving loan fund as a key tool to increase housing production.
The contract is with the Center for Public Enterprise, which is offering its services at a deeply discounted rate due to its philanthropic support, coming in significantly under the budgeted cost for technical assistance within the “Opening Doors” plan, city documents said.
Revolving loan funds provide low-interest, short-term loans for the development, preservation or rehabilitation of mixed-income housing. Upon repayment, RLFs are recycled into new projects, creating a sustainable source of housing finance, officials said.
Officials said the move will help the city package incentives that both support private development and also ensure there’s affordability, which the city has more control over.
Piggybacking off public comment, Councilmember Rachel Leon said that projects throughout the city had stalled, and she thought the action was “pretty exciting and a modest price, all things considered.”
According to city documents, the center will assist the city through the design and implementation of the RLF, produce reports and financial models, and help identify projects suitable for funding or co-development.
The work is expected to be completed by Dec. 31, 2026.