The massive $1.9 trillion American Rescue Plan Act of 2021 resulted in a windfall for the City of Bethlehem. Mayor William J. Reynolds said $7.2 million was spent in 2022, and another $16 million is allocated in the 2023 budget.

He made this announcement with U.S. Sen. Bob Casey at city hall Friday, complete with reminders that said act was passed with no help from Republicans, who spent the past week embroiled in a grinding congressional leadership fight that promises more obstructionism for the 118th Congress. Congresswoman Susan Wild, who was still trapped in Washington’s logjam, was present in spirit.

Reynolds plan is for both short-term solutions and long-term systemic investment. He said $7 million is dedicated directly to affordable housing and homelessness initiatives, while the rest is set for a community recovery fund, revenue lost due to COVID and capital expenditures.

“There’s a housing crisis in America,” Reynolds said. “In Bethlehem alone the price of a single-family home in the past three years has increased 52 percent. The price of a one-bedroom apartment has increased 57 percent. We understand that and we are dedicating dollars for the first time at this level. We used to have to be reactive but with these resources we are able to be aggressive. The goal is not to feel like we’re heling people, the goal is to help people.”

New Bethany Ministries, a local nonprofit focused on the homeless and low-income populations, is an immediate beneficiary, and Executive Director Mark Riddle said the city has not followed the national trend of decreased homelessness. “Since the start of the pandemic, there has been a 36 percent increase in the number of unhoused people; women and children [are up] 47 percent increase. We know that 22 percent of local LGBTQ persons have experienced homelessness at some point – that number rises to 50 percent for transgender, nonbinary and genderqueer [persons].

“The national Housing First model is why New Bethany is announcing an expansion and remodel. Instead of dorm-style housing, we’re planning to build efficiency apartment-style units on our Southside campus.”

Riddle said local partners and ARPA funds will help this project on other Southside properties to accommodate vulnerable populations in temporary, long-term housing to assist people while they search for the right job, transportation, childcare and eventually a new home with case-management and wraparound support services.

Riddle said New Bethany has helped more than 2,500 families since the start of the pandemic.

Reynolds said the guidelines for the suggested expenditures will be worked up by city staff over the next several months.