City mayor calls on council to reconsider funding for affordable housing
Mayor Eddie Moran is calling on City Council to reconsider its decision to deny funding to Opportunity House for an affordable housing project.
'Earlier this week, council voted four to three against a proposal that would have helped 20 families, real people, move from shelters, tents and cars into safe, stable homes,' Moran said during a press conference Thursday, emphasizing the impact the project could have for working families in need.
Moran asked council to hold a special meeting to reconsider the funding.
Council on Monday voted 4-3 to turn down the nonprofit's request for $2.89 million in HOME-American Rescue Plan Act funding to buy a 20-unit apartment building at 100 S. Fourth St.
Councilors Jaime Baez Jr., Vanessa Campos and Rafael Nunez voted in favor of the resolution. Council President Donna Reed and Councilors Wesley Butler, Chris Miller and Melissa Ventura voted no.
Moran said he was stunned by the decision.
'It was a vote that was made despite dozens of stories from people who bravely showed up and spoke out, hoping that their voices will lead to a better future,' the mayor said.
More than a dozen clients of the shelter spoke to council during the public comment period Monday and at earlier meetings. Many shared their personal struggles and implored council to approve the allocation.
Several told of working at low-paying jobs or living on Social Security or disability insurance income and struggling to make ends meet.
Michael Wood, a veteran who lives at Opportunity House with his wife Kelly, speaks on the importance of permanent housing during a press conference on Reading City Council's vote to deny funding for housing at 401 S. Fourth St., on Thursday, March 27, 2025, at the Opportunity House, 430 N. Second St. (BILL UHRICH/READING EAGLE)
One shelter resident, Michael Wood, a veteran, reiterated his appeal Thursday.
Market-rate housing is out of reach for Wood and his wife, Kelly, he said.
Unable to find affordable housing, the couple turned to Opportunity House, he said.
'Since I've been here, I've seen veterans come through that door, myself included,' he said. 'I've seen women and children come through that door.'
Wood also asked council to reconsider.
A resident holds a sign during a press conference on Reading City Council's vote to deny funding for housing at 401 S. Fourth St., on Thursday, March 27, 2025, at the Opportunity House, 430 N. Second St. (BILL UHRICH/READING EAGLE)
Opportunity House provides the resources and support its clients need to become self-sufficient, he said. But with so little affordable housing available, they are stuck in the shelter.
Council members have said they were led to believe the South Fourth Street apartments would be market-rate housing by the owner/developer of the building, Dream Ventures PA II LLC.
Some also have expressed concerns about the possible removal of the apartment building from the tax rolls and the value of the property compared with the asking price.
The mayor and Modesto Fiume, executive director of Opportunity House, dismissed these concerns, saying the property would remain taxable.
Fiume also said a commercial appraisal of the property came in at $3.3 million, more than the purchase price of $2.89 million.
Modesto Fiume, CEO of Opportunity House, speaks during a press conference on Reading City Council's vote to deny funding for housing at 401 S. Fourth St., on Thursday, March 27, 2025, at the Opportunity House, 430 N. Second St. (BILL UHRICH/READING EAGLE)
Fiume criticized council's decision, accusing those who voted against the funding of undermining the project and not operating transparently.
'Council President Reed keeps saying there are questions that need to be answered, but they (council) have repeatedly ignored our request to provide us with those questions,' Fiume said. 'There are clearly hidden agendas these four council members have.'
If there are no hidden agendas, Fiume said, the only conclusion is that they care little about providing affordable housing to individuals and families on fixed incomes who are stuck living in the shelter.
Reed and others opposed to the project have said they are sympathetic to the plight of the homeless but believe the money could be used more effectively in a different location or by spreading it around to multiple organizations.
The latter is not an option under the U.S. Department of Housing and Urban Development's guidelines for HOME-ARP funds, city administrators said.
Fiume emphasized the critical need in his plea to council for reconsideration.
'We have been averaging 87 people per evening,' he said, noting 32% are diagnosed with a permanent disability and 29% are senior citizens.
Opportunity House also operates Eckert House, a temporary shelter for use in extreme cold weather, in a former convent at 1500 Eckert Ave.
The building, also owned by Dream Ventures, is set to shut down next month.
'At Eckert House, we are averaging 65 people per night,' Fiume said, noting since the facility opening in November, 119 homeless individuals, including 64 children sought shelter there.
Of those clients, he said, 31% have been diagnosed with a permanent disability and 24% have a chronic health condition.
Fiume said few families at either facility have been able to return to independent living due to the shortage of affordable housing.
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