Allentown is preparing to put new money toward housing programs that could help people buy their first home, repair older properties, and improve neighborhoods. City officials recently discussed how to use money coming from an increase in the city’s deed transfer tax. The goal is to use the new funding to address some of the housing problems facing local residents while making it easier for more people to become homeowners.
The new housing fund comes from a 0.5 percentage-point increase in Allentown’s deed transfer tax. City Council approved the increase in December 2025, and the higher rate began in 2026. Officials expect the additional tax revenue to provide millions of dollars each year for housing programs.
New Money for Housing Programs
Allentown City Council held a special meeting to discuss how the money should be used. The city plans to direct the additional revenue into a dedicated housing fund.
The fund could support several types of housing programs. These may include assistance for first-time homebuyers, repairs to existing homes, rehabilitation of properties, and efforts to bring damaged or unused homes back into the housing market.
The idea is to use the money not only to help people purchase homes but also to protect and improve homes that already exist in the city.
City officials believe this could have a long-term effect on neighborhoods by helping more properties remain in good condition and by creating more opportunities for local residents to own homes.
Help for First-Time Homebuyers
One of the main goals of the fund is to make homeownership easier for people who are trying to buy their first home.
Buying a home has become difficult for many families because of high prices, limited inventory and competition from investors. Earlier city data showed that investors, LLCs and corporations were purchasing a large share of properties in Allentown.
City officials have argued that the new housing fund could help local residents compete in the market.
Financial assistance could make it easier for qualified buyers to handle some of the costs involved in purchasing a home. Depending on how the programs are structured, the fund could help support homeownership opportunities while keeping more properties available to people who plan to live in them.
Money Could Also Help With Home Repairs
The fund is not only about helping people buy homes. It could also provide support for homeowners who already live in Allentown. Some older homes need expensive repairs that homeowners may not be able to afford. Problems with roofs, electrical systems, plumbing, and other parts of a home can become major financial burdens.
City officials have discussed using the new funding for whole-home repairs and other programs that could help homeowners maintain their properties. Previous plans have also included assistance for seniors and other vulnerable residents who may have difficulty paying for major repairs.
Keeping existing homes in good condition could also help neighborhoods avoid having more properties fall into disrepair.
Bringing Older and Vacant Properties Back
Another possible use for the money is rehabilitating properties that need significant work.
Allentown has older housing stock, and some properties require major improvements before they can safely return to the market. Housing officials have previously identified rehabilitation and preservation of affordable housing as important parts of addressing the region’s housing shortage.
Instead of allowing properties to remain vacant or deteriorate, city programs could use the new funding to help repair and reuse them. This could increase the number of homes available to residents while also improving the appearance and condition of neighborhoods.
How the Deed Transfer Tax Funds the Program
The housing fund is being supported by the additional money collected through Allentown’s deed transfer tax.
The city’s total deed transfer tax increased from 2% to 2.5%. The additional 0.5% is dedicated to the new housing fund. Based on previous property sales, city officials estimated that the increase could generate more than $3 million during the first year.
For example, on a $200,000 property sale, the total deed transfer tax increased from $4,000 to $5,000. The additional $1,000 goes toward the housing fund. Buyers and sellers typically split the tax, although the exact arrangement can vary by transaction.
The city plans to use this new revenue as a consistent source of funding rather than depending entirely on temporary grants.
City Plans to Monitor the Money
The city’s Department of Community and Economic Development will manage the housing fund.
Officials are expected to create annual spending plans and provide reports to City Council. The program also includes a five-year review that could help determine whether the fund should continue.
Supporters say these requirements are intended to make sure the money is spent carefully and that residents can see how the funding benefits the community.
A Response to Allentown’s Housing Challenges
The new fund comes as Allentown and the wider Lehigh Valley continue to deal with a shortage of available housing.
A regional housing analysis has estimated that the Lehigh Valley needs thousands of additional housing units. Limited supply has contributed to higher prices and made it harder for many families to find homes they can afford.
City officials hope the new fund can address part of that problem by supporting both new homeownership and improvements to existing properties.
The program will not solve Allentown’s housing problems on its own, but officials see it as a new tool that could provide steady funding for housing needs.
For first-time buyers, homeowners who need repairs, and neighborhoods with properties that need investment, the new housing fund could provide additional opportunities in the years ahead.
New Allentown Program Helps Residents Buy Homes and Pay for Major Repairs
Allentown is preparing to put new money toward housing programs that could help people buy their first home, repair older properties, and improve neighborhoods. City officials recently discussed how to use money coming from an increase in the city’s deed transfer tax. The goal is to use the new funding to address some of the housing problems facing local residents while making it easier for more people to become homeowners.
The new housing fund comes from a 0.5 percentage-point increase in Allentown’s deed transfer tax. City Council approved the increase in December 2025, and the higher rate began in 2026. Officials expect the additional tax revenue to provide millions of dollars each year for housing programs.
New Money for Housing Programs
Allentown City Council held a special meeting to discuss how the money should be used. The city plans to direct the additional revenue into a dedicated housing fund.
The fund could support several types of housing programs. These may include assistance for first-time homebuyers, repairs to existing homes, rehabilitation of properties, and efforts to bring damaged or unused homes back into the housing market.
The idea is to use the money not only to help people purchase homes but also to protect and improve homes that already exist in the city.
City officials believe this could have a long-term effect on neighborhoods by helping more properties remain in good condition and by creating more opportunities for local residents to own homes.
Help for First-Time Homebuyers
One of the main goals of the fund is to make homeownership easier for people who are trying to buy their first home.
Buying a home has become difficult for many families because of high prices, limited inventory and competition from investors. Earlier city data showed that investors, LLCs and corporations were purchasing a large share of properties in Allentown.
City officials have argued that the new housing fund could help local residents compete in the market.
Financial assistance could make it easier for qualified buyers to handle some of the costs involved in purchasing a home. Depending on how the programs are structured, the fund could help support homeownership opportunities while keeping more properties available to people who plan to live in them.
Money Could Also Help With Home Repairs
The fund is not only about helping people buy homes. It could also provide support for homeowners who already live in Allentown. Some older homes need expensive repairs that homeowners may not be able to afford. Problems with roofs, electrical systems, plumbing, and other parts of a home can become major financial burdens.
City officials have discussed using the new funding for whole-home repairs and other programs that could help homeowners maintain their properties. Previous plans have also included assistance for seniors and other vulnerable residents who may have difficulty paying for major repairs.
Keeping existing homes in good condition could also help neighborhoods avoid having more properties fall into disrepair.
Bringing Older and Vacant Properties Back
Another possible use for the money is rehabilitating properties that need significant work.
Allentown has older housing stock, and some properties require major improvements before they can safely return to the market. Housing officials have previously identified rehabilitation and preservation of affordable housing as important parts of addressing the region’s housing shortage.
Instead of allowing properties to remain vacant or deteriorate, city programs could use the new funding to help repair and reuse them. This could increase the number of homes available to residents while also improving the appearance and condition of neighborhoods.
How the Deed Transfer Tax Funds the Program
The housing fund is being supported by the additional money collected through Allentown’s deed transfer tax.
The city’s total deed transfer tax increased from 2% to 2.5%. The additional 0.5% is dedicated to the new housing fund. Based on previous property sales, city officials estimated that the increase could generate more than $3 million during the first year.
For example, on a $200,000 property sale, the total deed transfer tax increased from $4,000 to $5,000. The additional $1,000 goes toward the housing fund. Buyers and sellers typically split the tax, although the exact arrangement can vary by transaction.
The city plans to use this new revenue as a consistent source of funding rather than depending entirely on temporary grants.
City Plans to Monitor the Money
The city’s Department of Community and Economic Development will manage the housing fund.
Officials are expected to create annual spending plans and provide reports to City Council. The program also includes a five-year review that could help determine whether the fund should continue.
Supporters say these requirements are intended to make sure the money is spent carefully and that residents can see how the funding benefits the community.
A Response to Allentown’s Housing Challenges
The new fund comes as Allentown and the wider Lehigh Valley continue to deal with a shortage of available housing.
A regional housing analysis has estimated that the Lehigh Valley needs thousands of additional housing units. Limited supply has contributed to higher prices and made it harder for many families to find homes they can afford.
City officials hope the new fund can address part of that problem by supporting both new homeownership and improvements to existing properties.
The program will not solve Allentown’s housing problems on its own, but officials see it as a new tool that could provide steady funding for housing needs.
For first-time buyers, homeowners who need repairs, and neighborhoods with properties that need investment, the new housing fund could provide additional opportunities in the years ahead.
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