Three big development projects designed to help those who need housing in Reading have received a boost from private grants.
FHL Bank of Pittsburgh recently announced that Hope Rescue Mission and both phases of the Buttonwood Gateway project were among its Affordable Housing Program recipients.
Hope Rescue Mission is receiving two grants totaling $799,000 toward building Lighthouse, the first women’s and children’s shelter in its 127-year history of helping the homeless.
The first phase of the Buttonwood Gateway project, in which Habitat for Humanity of Berks County plans to build and rehabilitate affordable homes in the area of Buttonwood Street, received a $600,000 grant
And the second phase of the Buttonwood Gateway project, in which Delaware Valley Redevelopment Company is building affordable housing in the same area, received $750,000. Because the company is a private business and not a nonprofit like Habitat for Humanity and Hope Rescue Mission, that money is actually a zero-interest loan that it must repay to the Reading Redevelopment Authority over 30 years.
The Lighthouse project will result in 43 private suites for women and their children, giving them emergency access to housing apart from Hope Rescue’s 250-bed-capacity men’s shelter.
The $4 million project had already received more than $3 million in private donations from businesses, individuals, civic groups and foundations, but will also need money to operate, said Executive Director Rob Turchi.
The grant is a big help, and this week prompted Hope Rescue’s board of directors to more forward with its construction schedule, he said.
The plan is to start construction early in 2022 and have it competed by the end of the year, he said.
The Buttonwood Gateway project, which has been planned for more than two decades, will target an area roughly bordered by Buttonwood Street to the south, Tulpehocken Street to the west, Lafayette Street to the north and Miltimore Street to the east.
Construction on the second phase began in May, and Delaware Valley Development is hoping to have its 47 units and community center done next year, said Glenn S. Worgan, a partner with the company.
The total cost of phase two is estimated at $15 million, but the loan will help, especially as the cost of building materials is rising, he said.
The first phase of the Buttonwood Gateway project should start construction in February and take two or three years to complete, but homes will be made available as they’re finished, said Tim Daley, executive director of the Habitat for Humanity chapter in Berks.
When finished, there will be about 20 new homes and several renovated homes, he said. The first three or four duplexes should be completed by the end of 2022, he said.
Though much Habitat’s work is done by volunteers, it does also use contractors when necessary and it too is facing higher prices for building materials, so the grant approval is good news, he said.
Habitat is also receiving federal funding toward the project.
While both phases of the Buttonwood Gateway Project have received city support, members of the group We the People protested the groundbreaking, saying they were concerned with potential environmental and health issues surrounding the project.
FHLBank Pittsburgh approved a total of $22.8 million in grants under its Affordable Housing Program, and that money will help finance 35 housing projects, creating more than 600 homes for very low-, low- and moderate-income individuals and families, as well as those with special needs.
The 24 rental and 11 homeownership projects approved for funding will serve a variety of recipients, including the chronically homeless, individuals with physical and mental disabilities, military veterans and seniors, the bank said.
Source: Berkshire mont
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