Boscola Announces $16,000,000 in Tax Credit Funding for Affordable Housing Project in Bethlehem

Boscola Announces $16,000,000 in Tax Credit Funding for Affordable Housing Project in Bethlehem

October 10, 2025

BETHLEHEM (October 10, 2025) - State Senator Lisa M. Boscola announced that the Pennsylvania Housing Finance Agency (PHFA) has awarded $16,000,000 in federal low-income tax credits to the City of Bethlehem for the Gateway on Fourth affordable housing project.

"This partnership between the Commonwealth and the City of Bethlehem will bring much needed affordable housing to Southside Bethlehem," Boscola stated. "The Gateway on Fourth project will help address the city's housing affordability crisis by increasing the supply of affordable housing at south Bethlehem's eastern gateway. This is another example of the Commonwealth partnering on an important redevelopment project to make it a reality."

The funding allows the City of Bethlehem to move forward with the first phase of the Gateway on Fourth, which is located at 1400-1414 E. Fourth Street provides for the new construction of two two-story and four-story buildings, consisting of 29 one-bedroom, 15 two-bedroom, and 16 three-bedroom units for a total of 60 units for general occupancy. There will be nine accessible units. The phase will be anchored by a health clinic operated by Neighborhood Health Centers of the Lehigh Valley. Construction for phase one is expected to begin in late 2026 and be complete by the spring of 2028 at which time leasing of the units will begin.

Gateway on Fourth is a public private partnership between the City of Bethlehem, Lehigh Valley Industrial Park and Pennrose, one of the nation's leading affordable housing developers. When completed the mixed-use development will total 120 units.

This funding further cements the partnership between the Commonwealth and Bethlehem as the Gateway on Fourth project had previously received $928,623 in state funding through the Redevelopment Capital Assistance Program ($500,000) and the Local Share Account ($428,623).

The Pennsylvania Housing Finance Agency awarded the low-income housing tax credits at its meeting on Thursday, October 9, 2025. Statewide, $66.5 million in low-income housing tax credits were awarded to support the construction of 1,900 new and rehabilitated affordable multifamily housing units statewide. When those projects are completed, the Commonwealth will have 41 new developments providing an additional 1,946 rental housing units, including 1,900 affordable units for Pennsylvania residents.

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