Lebanon-based construction company Arthur Funk & Sons Inc. is teaming up with a Wisconsin-based developer to build a 48-unit affordable apartment complex on a roughly five-acre plot along Mount Pleasant Road in South Annville Township, Lebanon County
A formal groundbreaking is scheduled for July 15, but site work already is underway, said Matthew Padron, managing director of development for the Wisconsin firm, Völker Development.
It is Völker’s first project in Pennsylvania, though it has two others in the works, Padron said.
One is a conversion of the former Stiegel Elementary School in Manheim Borough, Lancaster County, into affordable housing for seniors. The other is a multifamily project in Philadelphia.
In both cases, Völker is waiting to see if it is approved for tax-credit financing, said Padron, who is based in Lancaster and oversees the firm’s activities in Pennsylvania, Maryland, New Jersey and New York.
What’s the Lebanon project: Plans call for three two-story walk-up apartment buildings and a one-story clubhouse in a development to be called Carmany Place Apartments.
The nearly 57,000 square-foot complex will feature 30 two-bedroom apartments and 18 three-bedrooms.
The all-in cost is $18.6 million, Padron told biznewsPA.
The property itself cost $750,000, according to Lebanon County deed records.
Financing is coming primarily from a federal tax-credit program for low-income housing, with additional funding from Lebanon County and the Pennsylvania Housing Finance Authority, Padron said.
Construction is slated to wrap up in July 2025.
What’s the rent: It will be affordable for households making anywhere from 20% to 80% of the area median income, with most of the units priced for households at 50% to 60% of area median income, Padron said.
Rents will range from $299 per month to $1,559 per month, based on household income and apartment size, Padron said.
Most units will rent for between $900 and $1,264 per month.
Lebanon County’s median household income is about $72,000 per year, according to Census data.
What’s in a name: The complex is being named for Dr. Thomas Carmany, a retired physician who previously owned the land.
A friend of Bob Funk of Arthur Funk & Sons, Carmany wanted to ensure the property went toward affordable housing, said Padron. “We were truly thrilled about that.”
A report in 2023 identified a dearth of housing for lower-income households in Lebanon County, leaving many people stuck in either substandard or costly homes.
“We are very aware of the need for affordable housing in the area to support the local economy,” Padron said.
The trend: Housing affordability has been a hot topic, with advocates pointing to a dire need for lower-cost places to live.
The solutions range from increases in government funding to changes in zoning rules that would allow for more home construction.