A plan to finance affordable housing on the Southside was introduced at a public hearing prior to the regular meeting of city council Aug. 17.

The proposel is for new or expanded Local Economic Revitalization Tax Assistance (LERTA) zones to require developers building 10 or more residential units or apartments and who apply for LERTA benefits to either dedicate 10 percent as affordable housing or make a contribution of $25,000 per unit to an affordable housing trust fund.

The properties shown on the map as the program was presented consist of 19 lots, some of which are former Bethlehem Steel properties which now qualify as brownfields. The irregularly shaped lots range from .13 acres to 4.5 acres, the latter of which is near the Steel Ice Center at East First Street, which currently serves as the parking lot.

The definition of affordable housing according to documents accompanying the proposal is housing for which rent payment does not exceed 30-percent of the gross rental income including utilities.

The required affordable unit rents will be based on income and family size and will not exceed published HUD limits.

The problem of a lack of affordable housing in Bethlehem is the basis of the administration’s linking LERTA to the problem.

According to a letter accompanying the proposal by Director of Community and Economic Development Alicia Miller Karner, the coupling a tax abatement plan like LERTA with the administration’s goal of increasing the city’s stock of affordable housing is a better path than using what she called exclusionary zoning. This would avoid a potential legal struggle with “the development community,” which might challenge the legality of a Third-Class city using exclusionary zoning to increase affordable housing.

“LERTA is a tool that has been successfully used by Bethlehem for more than 35 years to eliminated blight and incentivize urban redevelopment,” said Karner in her letter to the council.

“In all of the preceding LERTAs, the city has not asked for anything in exchange for that incentive.”

The LERTA plan will not in itself solve the affordable housing problem.

“There is no magic bullet to solve Bethlehem’s housing problems,” said Karner.

Councilmember William Reynolds described the plan as an option because, “We don’t have the leverage to force developers to offer affordable housing.”

Councilmember Bryan Callahan, who attended via an internet platform, said he thought a $25,000 fee was reasonable. “If the fee is too high, developers will not participate.”

Council President Adam Waldron supported the proposal. “The role of government is to help as many people as possible.”

There was no vote on the plan as it was a public hearing.