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Bethlehem Housing Authority Votes to Purchase Home For Only Second Time, Members Proceed With Plan to Buy, Renovate, Sell Property to Tenant Who Finishes Program.

Posted on: Tuesday, 11 April 2006, 09:01 CDT

By Nicole Radzievich, The Morning Call, Allentown, Pa.

Apr. 11--The Bethlehem Housing Authority is brokering a deal that would allow it to buy and sell a house to one of its tenants -- the second such project in the authority's history.

The Housing Authority's Board of Commissioners voted unanimously to buy the two-bedroom home at 52 W. Ettwein St. for $56,100. The plan is to renovate the aluminum-sided home and then get it into the hands of a tenant who has completed a program that teaches life skills such as home ownership.

Clara Kendy, executive director of the housing authority, said the house is a good deal considering the favorable condition of the building and the rising property values in a city that has landed the upscale Lehigh Riverport condominiums and $60 million Moravian Village.

"We know how to renovate buildings -- we've done it for 60 years," Kendy said before the housing meeting Monday. "The challenge has been finding affordable properties to renovate."

The authority -- which traditionally finds low-income residents housing in its 1,500 units or with a private landlord -- launched its initial home ownership project last year with the dilapidated property at 402 Wyandotte St. Authorities had spent nearly a decade trying to condemn that property, once owned by the late Larry Marra Sr. who owned dilapidated buildings across the Lehigh Valley.

The Housing Authority acquired the property through the Bethlehem Redevelopment Authority and then began renovating the heating system, leaky roof and siding. The house was sold last year to first-time homebuyers Shayla and Hector Torres for $79,000.

Since then, housing officials say they had a hard time finding a second property until a homeowner approached them. The price was negotiated at just $100 more than what the homeowner originally paid in 2001, according to Northampton County records.

Eugene Gonzalez, deputy director for the Housing Authority, said he has no estimate for the improvements to the building but guessed it would not exceed $5,000.

All five housing commissioners were impressed with the building.

"From the photographs that were sent, this looks like a super bargain," Commissioner Paul Reitmeir said.

Kendy said she hopes the authority can use its $500,000 affordable housing account to do more projects to promote home ownership.

Many financial analysts view home ownership as an important step for individuals to climb out of poverty. Home ownership enables people to grow equity and have a stake in the community. The U.S. Department of Housing and Urban Development has been encouraging housing authorities to pursue home-buying programs with residents for years.

nicole.mertz@mcall.com

610-861-3614

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Source: The Morning Call, Allentown, Pennsylvania

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