Alley House Program

Reimagining Local Housing Types Through Community Coalition Building

Reviving a local housing tradition to help build economic and social resilience in our community. This program offers a scalable solution to address land scarcity and increase housing stock through place-based research and community engagement.

This is an important step forward in increasing the supply of housing in a responsible, community-centered way.

— Wes Hiatt

The Alley House Program is a collaborative effort, reviving the historic “Alley House” – a local form of secondary housing unit in Bethlehem, PA. This initiative brings together residents, municipal and non-profit organizations, planners, architects, and students to reintroduce these historically significant homes and provide affordable, accessible, and diverse housing options for the community. The main goal of the program is to build trust and consensus within Bethlehem’s neighborhoods and advocate for zoning reforms that will allow the construction of new Alley Houses as part of the city’s broader housing strategy.

Alley Houses were originally built on the alley facing side of existing lots during the 19th-century industrial boom in Bethlehem, where they served as an affordable solution for the many migrants and workers moving to the city to work at Bethlehem Steel. However, Bethlehem adopted a suburban-style zoning code that favored single-family housing and outlawed Alley Houses, leaving many of these historic units “non-conforming” under current regulations. Through a community-led approach, the Alley House Program is working to eliminate the disconnect between policy and the existing built environment. The Program is piloting what a 21st-century revival of these units will look like through the construction of four demonstration units in West Bethlehem.

Program Phases

Trust Building and Problem Setting: The first phase of the program focused on engaging with community residents to listen to their concerns and gather input for a shared vision. This collaborative approach laid the foundation for the program’s future actions, creating mutual trust among stakeholders.

Community Exhibition
Community Exhibition

Storytelling and Design Visioning: The program partners collected oral histories and conducted existing conditions surveys - documenting 919 existing alley houses - to gain insights into the local community’s housing experiences and needs. The key aspect of the storytelling work was reframing the concept of “Accessory Dwelling Units” (ADUs) to the locally recognized term “Alley House” and positioning the new development as a continuation of the city's existing housing traditions.

Existing Condition Surveying
Existing Condition Surveying

Pilot Projects: The final phase involves designing and building pilot Alley House units in Bethlehem to test the feasibility of the proposed zoning reforms. These pilot projects serve as proof of concept and an opportunity to refine the regulations for the broader implementation of Alley Houses across the city.

Students working on pilot unit construction
Students working on pilot unit construction

The Alley House Program has been awarded over $1.5 million to support its efforts. Grants include a $196,722 United States Department of Housing and Urban Development Grant; $850,000 in Community Projects Funding through the Transportation, Housing, and Urban Development (THUD) bill with the support of Senator Bob Casey and Representative Susan Wild; and $500,000 through the Pennsylvania Housing Finance Agency's PHARE program.

Collaborative Partners

  • Small Cities Lab: Leading research, design, and planning efforts for the program, including zoning recommendations, pilot designs, and community engagement.
  • Community Action Lehigh Valley (CALV): Engaged in community outreach and construction of the pilot projects.
  • New Bethany Ministries: Providing social services and managing the long-term tenancy of the pilot units.
  • City of Bethlehem: Driving the zoning amendments necessary to allow the construction of new Alley Houses.

By combining the expertise of these partners, the program ensures a comprehensive, action-driven approach to addressing housing challenges in Bethlehem.

Sara Satullo, Project Partner and Deputy Director of Community Development
Sara Satullo, Project Partner and Deputy Director of Community Development

The Impact of the Program

The Alley House Program represents a shift away from top-down, state-led housing solutions and instead prioritizes a community-led approach to land-use reform. It addresses the need for greater housing options and density in Bethlehem, while also respecting the city’s history and neighborhood fabric. By engaging with residents and building consensus around new housing types, the program fosters a more inclusive approach to urban development and offers a model for other small cities facing similar housing challenges.

As the program continues to move forward, the pilot projects and subsequent zoning reforms will lay the groundwork for future housing solutions that can accommodate a diverse range of family structures and housing needs in Bethlehem. This work will not only improve the city’s housing options but will also serve as a blueprint for other municipalities to follow in their pursuit of community-led, sustainable housing solutions.

Scalability & Small Cities Nationwide

The Alley House Program serves as a vital step towards addressing housing challenges in Bethlehem, and its model can be adapted to other cities facing similar issues. As cities across the U.S. look for solutions to the housing crisis, the program provides an example of how community coalition-building, design thinking, and inclusive planning can lead to more equitable and sustainable housing solutions.