City Council turns down funding for Opportunity House affordable housing

Yahoo

26-03-2025

City Council has turned down Opportunity House's request for funding to buy a 20-unit apartment building for affordable housing for working adults.
Council at its regular meeting Monday voted 4-3 against allocating $2.89 million in HOME-American Rescue Plan Act funding to the nonprofit to purchase the property at 100 S. Fourth St.
After tabling the motion three times over the past six weeks, 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.
The vote came after numerous community members and clients of Opportunity House spoke at a series of meetings, sharing their personal struggles and imploring council to approve the allocation.
Opportunity House clients ask City Council to support affordable housing project in Reading
Council members said the owner/developer of the building, Dream Ventures PA II LLC, an entity of Heights Advisors, Brooklyn, led them to believe the apartments would be rented at market-rates. They raised concerns about the removal of the property from the city's tax rolls should it be bought by the nonprofit.
At a meeting earlier this month, Modesto Fiume, executive director of Opportunity House, said the organization would pay taxes on the property.
The nonprofit, which owns and operates a shelter at 430 N Second St., also owns five rental units on which taxes are paid, he said.
Opportunity House also operates Eckert House, a temporary code-blue shelter, in a former convent at 1500 Eckert Ave. that also is owned by Dream Ventures.
Several residents of Eckert House said they will be forced to live in their cars if the facility closes at the end of April as scheduled.
Prior to the vote, council approved an amendment by Baez that would have required Opportunity House to pay the full amount of the property tax on the South Fourth Street building and eliminated a requirement for an independent appraisal.
Council members have expressed concern about the value of the property compared to the asking price.
Fiume said the building was appraised as part of the nonprofit's application for a swing loan from Fleetwood Bank. The appraised value was $3.3 million, he said, more than the purchase price of $2.89 million.
During council's committee of the whole meeting earlier Monday, council solicitor Michael Gombar said the county's reassessment of the renovated building is $461,100.
An assessed value is not the same as fair market value, he explained. However, Gombar said, there is a state-recognized formula, known as a common level ratio, which can be used to calculate a possible fair market value and is sometimes used for legal purposes.
Using the formula, he said, would result in a potential fair market value of $1,268,025, a figure far less than the purchase price.
'That is not a reflection of what the fair market value really might be for the property,' Gombar said. 'I'm just throwing it out there as something that can be used in the legal world.'
With the new assessment, Gombar said, the annual property tax income for the city would be about $8,400.
City Managing Director Jack Gombach read a statement from Mayor Eddie Moran in support of the resolution.
The mayor reaffirmed his administration's commitment to building more affordable housing and addressing the blight throughout the city.
Following Monday's meeting, Moran issued the following statement:
'My vision for our city is rooted in progress—neighborhoods that are safe and welcoming, housing that meets the needs of all our residents, and a downtown that's alive with energy, growth and opportunity.
'While I'm disappointed in tonight's vote, I remain focused on that vision. This project was one step in a broader effort to revitalize our city—to create housing that brings people back into our neighborhoods and supports the small businesses that make our community special.
'We will continue to pursue bold ideas, form strong partnerships, and push forward with purpose. The path to revitalization is never easy, but my commitment to this work—and to the people of this city—remains strong. Together, we will build a brighter future, and together, we can do more.'
Reading City Council tables a $2.89 million grant for housing for shelter clients
The city received $3.5 million in HOME-ARP money about three years ago and has until 2030 to allocate the funds.
The federal funding is earmarked to reduce homelessness and increase housing stability.
Baez said failing to approve the resolution could have broader consequences.
'Right now, we cannot deny that we have an erratic individual who is currently in the White House and whom we cannot trust,' he said. 'I wake up every day asking, what's next, and therefore this is funding that I feel that we just can't have an opportunity to lose. We can't miss it.'
Reed and Butler said they could not support the resolution due to the purchase price.
'When you look at this full amount, there are monies that could be further used by Opportunity House for properties that are maybe dispersed throughout the city, that give a better sense of community to the folks who are in need of it,' Reed said. 'I'm not uncomfortable with finding a place for people to live, but I'm uncomfortable with a great deal involved here.'
Reed did not elaborate on her discomfort and did not respond to a request for further comment.