Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing Projects topic
No spam. Unsubscribe anytime.
Glendon Hotel affordable‑housing plan canceled after construction costs surge; county to seek repurposing of grant funds
Summary
Staff told the Northampton County General Purpose Authority the planned affordable housing project for the former Glendon Hotel site was canceled because per‑unit construction costs rose to about $581,509 and funding gaps remained; the authority had previously provided $7,430 for site reuse and zoning work.
Tina, a county staff member, told the Northampton County General Purpose Authority on June 3 that the affordable housing project proposed for the former Glendon Hotel site has been canceled after sharply higher construction estimates left a large funding gap.
Tina said the authority previously committed $7,430 for a site reuse study and zoning and hearing application work related to the Glendon Hotel project. County staff and the Community Action Committee informed the authority that escalating prices made the proposed affordable housing project infeasible: staff presented a per‑unit construction estimate of $581,509 and a projected sale price of $151,900 per unit, creating a substantial budget gap. Tina said the project lender (described in the packet as “CALV”) cannot provide additional loan funds and that the award the project had received from the state must be returned or repurposed.
Tina said demolition of the blighted building is complete and the parcel is a cleared lot; she and board members noted the parcel is small and a steep slope limited development potential, with staff estimating the most the site could accommodate would have been five units. Tina said she would send a letter to request repurposing of the state LSA grant to another local affordable‑housing project (staff referenced using the funds for a Habitat project in Forks Township). One grant had been awarded but not yet disbursed and staff will notify the state that the project is no longer feasible so the state can decide repurposing.
Board members expressed regret. “It’s very unfortunate that the funding is not there for affordable housing,” one member said. The authority did not take formal action on the matter at the meeting; the report was informational and staff said they would brief the county council economic development committee this week.
No additional applicants or alternative developers were presented at the meeting; staff said future use of the cleared lot will be decided by county administration at a later date.
