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Lebanon city council learned at its Monday, July 27 meeting that there is a serious shortage of affordable housing in Lebanon city and county, and that it could get worse.
“Our 2023 housing needs assessment … underscored the urgency of the housing crisis in Lebanon County,” said Caitlin Lockard of the Lebanon County Housing Collaborative. “We know that we have a structural housing imbalance, and this highlights the accelerated household growth that is happening in Lebanon County, including specifically with seniors 55 plus, although it’s happening across all age brackets and all income levels.”
The shortage of low and middle income housing in the city is at the point where basic laws of supply and demand are being distorted, Lockard said.
“Landlords here in the city can charge more per unit,” said Lockard. “So you can go out to North Cornwall and get something brand new for less money than what you would pay here in the city for something that’s less desirable.”
And, according to Lockard, “two to three bedroom units are making up almost 79% of what’s available. The reason this matters is that it’s unlikely for people to be able to afford those kind of units without assistance.”
“We have over 13,000 cost-burdened households, individuals who are paying more than 30% of their total income towards housing each month.”
Some individuals, according to LCHC’s figures, “are severely cost-burdened, paying over 50%. And why this matters is when people are spending so much on housing, they’re unable to afford other things.”
The Lebanon County Housing Collaborative works with local and state governments, builders and developers, regional organizations, funding sources, and non-profits to create affordable housing and rehabilitate existing substandard units.
In a related matter, Laurie Funk of the Lebanon County Coalition to End Homelessness told council that the summer “point-in-time” count of persons experiencing homelessness in Lebanon County will take place on Thursday, August 6, beginning at 6 p.m. at St. Andrew’s Presbyterian Church, 600 S. 12th Street, Lebanon. Volunteers are needed.
“We do the summer PIT count particularly and specifically to grow awareness of what homelessness looks like in the county and also to connect those kids to school so that they can start the school year off early,” Funk told council.
Federal block grant spending approved
Council Monday night approved a plan to distribute the latest round of Community Development Block Grant (CDBG) money received from the federal government.
The CDBG program, administered by the U.S. Department of Housing and Urban Development, is intended to improve the quality of life for people with low or moderate incomes, revitalize urban centers, and address the health and safety needs of low-income communities.
Municipalities receiving CDBG funds distribute them to eligible individuals and organizations according to flexible HUD guidelines. Private companies, nonprofit organizations, and individuals are not eligible to receive CDBG funds directly from HUD.
The city has been awarded $727,000, which will be allocated as follows:
- $100,000 for crime prevention
- $277,000 for street improvements
- $80,000 for housing rehab and home buyer assistance
- $130,000 for code enforcement
- $140,000 for administration
Capello noted that Washington has recently been cutting CDBG grants, which started in 1974 during President Gerald Ford’s administration.
“We used to receive $1.6, $1.7 million,” said Capello. “And we’re very grateful for the money that we do receive, but it’s basically been more than halved.”
In other matters, council:
- Tabled a motion until August to approve an ordinance allowing paddle boards at Stoever’s Dam. Capello opposed the ordinance on safety and sanitation grounds, and noted that a July 23 water test showed E. coli bacteria in the water. Councilman Sean Maguire and pro-paddleboard speakers favored its adoption, arguing that paddle boards are equivalent to other types of small watercraft already permitted at Stoever’s.
- Joined in a proclamation recognizing 14-year-old local taekwondo black belt Joshua Aguirre, a student at Lebanon’s Paloma School. The young martial artist is a Junior Olympian, one of the youngest third degree black belts ever, and winner of hundreds of competitions and trophies.
- Reappointed retired banker Craig Gates to the city’s zoning hearing board for an additional five years. He has been on the board for 11 years.
- Reappointed building designer Chris Fenstermaker to the city’s planning commission for a two year term. He was appointed in 2024.
- Reappointed telecommunication executive Rafael Arvelo Castillo to the planning commission for a four year term. He was appointed to fill a vacancy in 2025.
- Authorized a cable TV franchise agreement with Verizon Pennsylvania LLC. Verizon will now compete for a shrinking pool of city cable (non-internet) customers with current franchisee Comcast.
- Approved a lease between the city and tax collector Kratzenberg & Associates, commonly known as Keystone Collection Group, for office space in City Hall. Keystone Collection had previously leased space in the Lebanon County-City Building.
- Capello reported that through June 30, with the budget year half over, revenues and expenses were at 61% and 39%, respectively, of annual projections.

Next Lebanon City Council meetings
City Council’s next pre-council planning meeting will be on Thursday, Aug. 20, at 4:45 p.m. The next regular monthly council meeting will be on Monday, Aug. 24, at 6:30 p.m.
Council meetings are open to the public and held in the City Hall multi-purpose room, 735 Cumberland St., first floor, Lebanon. Meetings are streamed live on YouTube here.
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