Jessica Meyers & Ryan Sanders
Tarik Casteel has a vision for his city.
His vision includes quality, but accessible housing, and neighborhoods that are vibrant with clean and safe streets for families. He wants all of this to be affordable for Harrisburg families.
“I’m born and raised in Harrisburg,” he said. “At the end of the day, I believe you should fix your home before you go elsewhere. I think Harrisburg is one of the most needed areas in this region, and it was neglected for a long time.”
In September, Casteel’s company, TLC Construction & Renovations, finished an apartment project near N. 15th and Walnut streets in Allison Hill. “The Cornerstone” now provides housing in the form of 50 affordable one-, two- and three-bedroom units for lower-income families.
This is one of several affordable housing projects in the city that recently have been completed or are close to a ribbon cutting. In the years right before and during the pandemic, several developers proposed plans for apartments to help fill a need for lower-income families.
At the federal level, “affordable housing” is usually defined as housing that costs no more than 30% of a household’s gross income. In addition, about 28% of Harrisburg households fall below the poverty line, according to the most recent U.S. census data.
Harrisburg Mayor Wanda Williams has made affordable housing one of her primary policy goals, as have several City Council members. At public meetings, council President Danielle Bowers has often questioned developers about the inclusion of affordable housing in their proposed apartment projects, sometimes even voting against projects that didn’t incorporate units for lower-income tenants.
Bowers told TheBurg that she’s happy to see several projects coming online that she believes will be more affordable for her constituents.
“They’re all affordable for our residents—that’s always my number one priority,” she said. “It’s really exciting.”
Deserve It
Casteel’s project is just one of many affordable projects finishing up in Harrisburg.
“Sycamore Homes,” a 23-unit apartment building in south Harrisburg, is slated to finish construction by the end of the year. “Bethel Village” will provide 49 units for lower-income seniors on N. 6th Street in Midtown, also with an estimated completion in December. On the same street, “JMB Gardens,” a project by Harrisburg native and former NFL player LeSean McCoy’s company, Vice Capital, will offer 41 affordable units in Uptown, expected to finish in January.
Most of these projects faced pandemic-related delays, including supply shortages, which prolonged their timelines. However, they all are finally getting close to move-in dates, while The Cornerstone has already welcomed tenants.
“I’m just hoping that, once we get these tenants in, we can get phase two going right away because I’ve seen the list of people that are not going to be able to move in. So, it’s like, we need to keep on going,” Casteel said. “It was eye-opening once I saw how many people were waiting.”
Casteel said that, in the months leading up to project completion, his company had a waiting list of hundreds of people, displaying the city’s dire housing need.
During the lengthy design and construction process, Casteel, who grew up living in affordable housing himself, said that he didn’t “cut corners,” as he wanted to break the stigma that lower-income housing is lower-quality.
“A lot of times, they got the reputation or people think that they don’t want to work, and it’s not the case,” he said. “A lot of people work, but they just don’t make enough. They want good housing, and they deserve it. I gave them what they should be having—the best of the best.”
Casteel pointed out that, as neighbors have seen the revitalization, many have even made improvements to their own properties.
“The residents over there were welcoming because they loved to see that it was local people, but they also loved to see that their neighborhood wasn’t being neglected,” he said. “People thought we were gentrifying and didn’t know it was a Black developer and that they’re affordable [units] because they don’t look affordable.”
Challenging Stereotypes
George Fernandez has quickly found out how challenging development can be, especially when it comes to affordable housing and the requirements that come with utilizing low-income housing tax credits (LIHTC), awarded by the Pennsylvania Housing Finance Agency (PHFA).
Fernandez, founder of Latino Connection and CEO of Color & Culture and Fernandez Realty Group, said that his first affordable development project, Sycamore Homes, likely will be completed in December.
“There really have been a lot of lessons learned for me as a young, minority developer,” he said. “No wonder a lot of other minority developers aren’t doing this type of work because of how hard the work is, to be honest with you.”
Fernandez explained how much personal investment has gone into this project as well, as he also grew up in a lower-income family and is striving to make sure Sycamore Homes provides quality living. He was proud to share that the units feature oversized fridges, washers and dryers and nice countertops and cabinetry.
“We really want to give people a sense of belonging and a sense of pride and dignity,” Fernandez said.
He hopes that minority developers, in particular, are given more opportunities to receive financial support, along with technical assistance and training, so that the pathway to becoming a developer can become more accessible.
“It is now time that those people that want to be doing this type of work be given the right seat at the table—so that the people that are building the homes look like the people that are going to be served in those homes,” Fernandez said.
Building On
Ryan Sanders of RB Development, the group behind Bethel Village on the 1000-block of N. 6th Street, is also a local and has spoken on the importance of diverse representation in the real estate field.
The plan for Bethel Village was first proposed in 2021 to help revitalize a block with significant local African American history. The new development now sits on the former site of the historic Bethel AME Church, which burned down in 1995.
Initially, the project faced pushback from neighbors who were concerned that there wouldn’t be enough parking in an already congested neighborhood. However, Sanders and his team worked to find additional off-street parking and pushed forward with plans, knowing that this housing was needed.
Sanders said that affordable housing projects often can’t offer the same financial return as market rate projects. In addition, it takes a lot of planning and technical knowledge to participate in the LIHTC program, he said.
“You’ve got to be crazy, and you’ve got to really want to do something for the community,” he said.
Sanders is working with general contractor JEM Group on the project. CEO Jessica Meyers said that Camp Hill-based JEM first dipped its toe into affordable housing construction about seven years ago and has come to understand its importance
“It really opened our eyes to what this market is and continues to be, and it’s an opportunity to give people a nice place to live,” she said. “No matter what your income level is, everybody deserves a safe, nice place to live.”
With many Harrisburg residents in search of affordable housing, these projects won’t solve the total need. But local officials and developers are encouraged by the investments. Several of these developers even have additional affordable and market-rate projects on the horizon.
Sanders has plans to build next door to Bethel at the site of the former Jackson Hotel, which collapsed in 2021. McCoy broke ground on another partially affordable apartment building on 6th Street in 2023. Fernandez has proposed affordable housing for seniors at the site of the former Woodward School, and Casteel has additional development phases planned for Allison Hill.
“That’s going to help out a lot of people,” Casteel said. “If everyone can go in and do another round or two then break out and do market rate, I think the city would be coming back real strong at that rate.”
For more information about TLC Construction and Renovations, visit www.tlchbg.com.
To find out more about Fernandez Realty Group, visit www.fernandezrealtygroup.com.
To learn more about RB Development, visit www.rbdevllc.com.
For more information about Vice Capital, visit www.vicecapitalgrp.com.
To find out more about JEM Group, visit www.jemgroup.net.
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