When: Lancaster City Council committee meeting, Nov. 1.
What happened: Jaime Arroyo, council member and economic development committee chair, proposed council pass a bill allocating an additional $5 million in American Rescue Plan Act funds to affordable housing in the city from the $39.5 million awarded to the city.
Why it’s important: The lack of availability of affordable housing is a known issue in Lancaster city. According to the city’s website, 38% of total households are in need of more affordable housing. If council passes the measure,it will allow for 85 new affordable housing units in the city, as well as the rehabilitation of 443 existing units.
Background: Last year, council authorized the appropriation of $5 million in ARPA funds for affordable housing projects. If council approves the additional amount, the city will then have $10 million for affordable housing projects and will be using $7.4 million from that amount to award projects proposed by nine organizations mentioned in the bill. To date, the city has spent $1 million to purchase a lot on Marietta Avenue with the purpose to develop the property into multiple affordable housing units. Officials have not determined how to use the remaining $1.6 million they will have if the bill is passed.
Process: From June through Aug. 22, the city was seeking proposals from nonprofits, real estate developers and other community partners interested in increasing the number and quality of affordable housing units within the city using ARPA funds. They received 14 applications from 13 organizations.
Awards: The committee unanimously moved to full council that the following organizations are awarded: SDL Devco, $2 million for the construction of 45 new units; Chestnut Housing Corp., $550,000 for the construction of eight new units; YWCA Lancaster, $500,000 for the construction of 16 new units; Community Basics, Inc., $500,000 for the construction of nine new units; and Lancaster/Lebanon Habitat for Humanity, $450,000 for the construction of seven new units. In addition, council recommends the following organizations to be awarded to rehabilitate affordable housing units in the city: Partners with Purpose, $500,000 for the rehabilitation of 97 units; Tenfold, $1 million for the rehabilitation of 46 units; SACA Development Corp., $850,000 for the rehabilitation of 30 units, and Lancaster Area Housing Authority, $1.05 million for the rehabilitation of 270 units.
Criteria: A committee of three elected officials and two city employers scored the proposals. Arroyo noted that the city has been following a strict conflict of interest policy which is publicly available on the city’s website, when scoring proposals. Level of affordability and affordability protections, compatibility with the city’s housing study and interim housing strategy, and the ability to complete construction/rehabilitation before the end of 2026, were some of the criteria that were used.
Quotable: “Getting 85 total new units for an investment of $4 million, not including the prospective units on Marietta Avenue, is something that we should feel quite proud of,” Mayor Danene Sorace said. The city anticipates working with the county redevelopment authority around next steps for the remaining $1.6 million.
What’s next: Lancaster City Council will vote on the affordable housing bill, named Administration Bill 23, later this month. Council will meet next on Nov. 7.
