Allyson Lehr |
He voted Yes.
For those of who who just aren't up tp date on all the tax gimmicks out there, LERTA is an acronym for Local Economic Revitalization Tax Assistance.
Property owners inside a LERTA zone may apply for a tax break for improvements that increase assessment, upon which all real estate taxes are based. They will continue paying full taxes on the land assessment, but the increase in assessment resulting from improvements like a new roof or front porch can be phased in gradually over a period of ten years.
To me, these are the least offensive of the tax breaks. Generally, NorCo Council will approve a LERTA if it has been approved by the City and school district, as is the case here. But the sheer size of the area, combined with LERTA failures in Easton and philosophical concerns about picking winners and losers, made county officials hesitate.
What is this area? It's the northern neighborhood near Moravian College. Its boundaries are Maple Street on the east, Main Street and Mauch Chunk Road on the west, Broad Street on the south and East Laurel on the north. "It's not the most depressed in Bethlehem, but it's not the most affluent, either," said Bethlehem Housing and Community Planner Allyson Lehr back in August. She said the area could go "either way." She believes a LERTA will help this area from becoming a "problem neighborhood."
Why a LERTA? here's what Lehr told Council in August.
- There are 8,156 properties in this area, and 59% of them are rentals. A LERTA gives a landlord an incentive to make improvements.
- A majority of properties inside this district are rated C or D by county assessors.
- Three schools - William Penn Elementary, Liberty High School and Thomas Jefferson - are either inside or immediately outside this district. They have all shown an alarming increase in the percentage of students who receive free or reduced lunches. At Liberty High School, that percentage has increased from 34% in 2005 to 55% in 2015. At William Penn Elementary, 77% of the children are getting free or reduced lunches. It's 72% at Thomas Jefferson. "There's an indicator that there's some kind of economic distress in that area," observed Lehr.
- 208 homes in the proposed LERTA district are vacant in what should be a desirable area just a stone's throw from the downtown.
After Lehr's excellent presentation, I decided to see how successful Easton has been with its smaller LERTA, which also includes residential properties. It has been a failure:
1. The Easton LERTA district comprises 859 properties of all kinds, from residential to commercial and industrial. While this is quite large, it is only about 1/10th the size of the 8,156 properties for which a LERTA is being sought in Bethlehem.But Bethlehem, unlike Easton, recently adopted a Financial Accountability Incentive Reporting (FAIR) program, thanks to Bethlehem Council president Willie Reynolds. This will enable Bethlehem to keep an eye on its LERTA.
2. In the five years that Easton's LERTA has been in effect, only 72 properties have enrolled in the program, with 56 in progress and 16 under construction. This is a fairly low number.
3. Only 46 residential properties have taken advantage of the LERTA. Even fewer, just 26, are commercial.
4. Twenty-one of these properties are completely exempt from all real estate taxes because they are in the Keystone Opportunity Zone, another tax incentive program in which virtually all taxes, except federal income taxes, are exempt. This includes the Simon Mill (19 parcels), old City Hall (1 parcel) and Governor Wolf Building (1 parcel).
Willie, who is used to being in a room full of Democrats, had an eye-opening experience when he visited NorCo Council two weeks ago and again last night. But he was quite conciliatory when he addressed County Council and thanked them "Now is not an easy time to be in government," he said.
I had considered bribing John Cusick to tell Reynolds his time was up as soon as he got to the podium.
Though I think the LERTA will accomplish nothing in Bethlehem, I expected to see it pass last night.
But that was before an amendment to the LERTA ordinance was introduced last night.It was about 7,000 pages long and was itself completely full of errors.
It took Council nearly an hour of meeting time to sort through the mess and correct it.
When it was time to discuss the ordinance on its merits, Hayden Phillips and Matt Dietz repeated their argument that the government was"picking winners and losers."
John Cusick's opposition was a bit more nuanced. First, he complained about the the 10-5-0-50split among the three taxing entities. Second, he thinks the area issimply toolarge. Third, he'd like to see the City use all the other tools available.
"This whole body is amazing to me," said Ken Kraft, who would love to be in a room full of Democrats. "We're not picking winners and losers. We're taking an area out of blight."
Kraft also said that Bethlehem is more proactive than Easton and won't be the LERTA failure that Easton is.
Bob Werner, who represents Easton, was outraged and challenged Kraft to a duel. Today at dawn, they rowed across the Delaware so that Morganell is unable to prosecute them. I will report the details when they come.
11 comments:
One more reason to eliminate property taxes al together.
its ALL not al
Another tax give away to landlords who suck enough government money from taxpayers out of HUD. Do you really think these landlords care what there buildings look like when they have parasites living in them. Someone in my family bought a nice half a double near William Penn about a year ago. He's school teacher and coach and works his ass off to pay his mortgage and maintain his home $1,200 a month mortgage. His neighbor on the other half decided to rent and enrolled in HUD. The landlord gets $1000 a month from HUD and $300 from the tenants. The government is complicit in the blight of these cities by allowing people to live in housing they do not deserve and did not work for. They are picking winners and losers and the losers are the ones who go to work and pay for what they have without government assistance. Now they want us to subsidize the work on these once middle class homes that are now considered low income housing. It's a shame when a school teacher who works has to to live in a home connected to HUD housing with people who don't.
I agree with 6:36
So, 6:36 AM a previous posting talked of Alan Jennings running for office. Get him in Washington and you are going to have more of the destruction of neighborhoods.
6.36
"parasites living in them"
well you seem nice.
"They are picking winners and losers"
so the budget for HUD is 46 billion.
try
https://en.wikipedia.org/wiki/Lockheed_Martin_F-35_Lightning_II
"By 2014, the program was "$163 billion over budget [and] seven years behind schedule"
it amazes me how some folks have no problem screwing poor folks over while ignoring defense contractors who rip off the public.
so if you want to save some tax money go after Lockheed.
Actually this does not help the homeowner so much as a landlord. I would love to see it available only to owner-occupied residential and some commercial uses.
Bernie,
636 am is almost right as to the government is complicit, but it should be the local government is complicit. They think that receiving federal HUD dollars eliminates local entities from tenant liabilties and responsibilities of enforcing what is allow in these tenaments.
For instance there is a clause signed by all parties that clearly states, a drug bust eliminates all reciepiants. Now the Fed is supposed to take time to enforce this because local officials allow these behaviors with no punishment to anyone that pays officials.
5.05
"all parties that clearly states, a drug bust eliminates all reciepiants"
and the actions of HUD have been subject to various Court rulings and the various States act differently based on the crime.
what that has to do with property improvements somewhat escapes me.
one has to do a better job of enforcing building codes.
one could mandate strict inspections of say all rental properties with the focus on removing blight.
HUD has inspections and requirements for homes to rented.
private rentals do not have such requirements.
so start by going after the bad landlords who let their property to decay
I think so many people abuse HUD. For an example in the block I live in we had a single home the landlord rented to HUD. When these residents moved in last Summer in late May it was originally the Husband (he had NO JOB - the Wife (just got a PT job at ST Lukes) I believe it was in housekeeping services & there Teenage Daughter going to addend Liberty that Fall. The landlord told all of us that lives in the block who all WORK Full Time job's and maintain our homes that it's only The Husband Wife & Daughter on the Rental Agreement & the Husband is looking for work at the moment. Than after about 8 months of living there another OLDER Daughter & Boyfriend showed up to (STAY AWILE) only until her Boyfriend gets assigned to an ARMY Base (turns out he got his orders to SHIP OUT) SHE had to stay apparently they did not file the right Housing Papers with the ARMY. About 4 months go by now the Sister to the Wife Shows up to (Stay AWILE going through a divorce) car has MASS plates on it. Well Enough is Enough so a few of my Neighbors Complained to the Landlord ( I did not get involved I figured its non of my concern & only stating what my fellow neighbors found out) & the BRO & an investigation began Turns out they Violated some Rules of the Landlord rental agreement & HUD Rules. The landlord gave them 30 days to Vacate witch they did (went somewhere in Allentown 1 neighbor said) The Landlord said he's NOT going to RENT TO HUD once he fixes the damage & Re Paints. It just goes to show HUD Renters Abuse the system
8.14
if blight is the problem then the landlord is the problem.
i am sure the guy shipped out with the ARMY is happy that the whole neighborhood is watching every person in that neighborhood with the zeal of the soviet informer system.
well done Comrades--the WORK Full Time group gets an extra turnip.
sounds like your little "purity squad" needs to get a life and mind your own business.
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