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Affordable Housing Dominates Old Erie: A Case Study of LIHTC Impact
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Old Erie, a neighborhood in Evansville, Indiana, demonstrates a significant presence of affordable housing funded through the Low-Income Housing Tax Credit (LIHTC) program. The neighborhood contains 233 total affordable housing units, all designated as low-income units. Based on the 2022 population of 558 and the national average household size of 2.61, an estimated 214 housing units exist in the neighborhood. The LIHTC-funded affordable housing appears to cover most of the neighborhood's housing inventory.
The LIHTC projects in Old Erie have received $17,000,000 in project tax credits. This equates to an average federal funding of approximately $72,961 per unit. The neighborhood has maintained a long-term commitment to affordable housing, with projects spanning from 1998 to 2018. The initial project, Memorial Pointe, was completed in 1998, while the most recent addition, Silver Birch of Evansville, was finished in 2018. This indicates a 20-year period of affordable housing development in the area.
The 2000s saw the most activity in affordable housing development, with three out of four projects completed during this decade. These projects include Lincoln Estates Apts (2000) and Memorial Pointe Phase II (2001). The affordable housing inventory in Old Erie is diverse, consisting of 69 efficiencies, 31 one-bedroom units, 64 two-bedroom units, and 24 three-bedroom units. This mix accommodates various household sizes and needs within the low-income population.
Over the last decade, Old Erie has experienced demographic shifts. The population has fluctuated, with a general downward trend from 598 in 2015 to 558 in 2022. However, median income has shown a significant increase, rising from $14,722 in 2015 to $23,649 in 2022. Racial demographics have also shifted. The proportion of Black residents decreased from 60% in 2015 to 28% in 2022, while the White population increased from 32% to 65% during the same period. This change in racial composition coincides with the period following the completion of the most recent LIHTC project in 2018.
The substantial increase in median income and the shift in racial demographics may indicate changing neighborhood dynamics. These changes occurred after the completion of the last LIHTC project, potentially suggesting that the affordable housing developments have contributed to neighborhood stability and economic improvement.
Old Erie demonstrates a strong commitment to affordable housing, with LIHTC-funded units potentially covering most of the neighborhood's housing inventory. The area has seen consistent development of affordable housing over two decades, with a diverse mix of unit types to accommodate various household needs. The significant federal investment, averaging nearly $73,000 per unit, underscores the importance of the LIHTC program in this neighborhood.
Recent years have shown notable demographic changes, including population fluctuations, a substantial increase in median income, and shifts in racial composition. These changes, occurring after the most recent LIHTC project completion, may reflect the impact of affordable housing on neighborhood stability and economic growth. The analysis suggests that LIHTC-funded affordable housing plays a crucial role in Old Erie's housing landscape and potentially contributes to its evolving socioeconomic characteristics.
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