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Affordable Housing Dynamics in Loring Park: A 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
Loring Park, a neighborhood in Minneapolis, Minnesota, has a significant inventory of affordable housing funded through the Low-Income Housing Tax Credit (LIHTC) program. The neighborhood has 864 units in LIHTC-funded projects, with 617 designated as low-income units. Based on the 2022 population of 9,514 and an estimated 3,645 housing units, LIHTC-funded affordable housing comprises approximately 23.7% of the neighborhood's estimated housing inventory, indicating a substantial presence of affordable housing options.
The LIHTC program has invested significantly in Loring Park, with project tax credits totaling $4,121,595. This translates to an average federal funding of about $4,770 per unit in LIHTC-funded projects. The neighborhood has seen consistent development of affordable housing over nearly three decades, with the first LIHTC project completed in 1994 and the most recent in 2019.
The 1990s saw the most affordable housing activity, with three projects completed during this decade. The 2010s also saw significant development, with three projects completed between 2012 and 2019. Loring Park's LIHTC-funded housing inventory is diverse, offering a range of unit types including 284 efficiencies, 354 one-bedroom units, 180 two-bedroom units, and 46 three-bedroom units. This distribution suggests a focus on accommodating smaller households and individuals.
One project, Loring Towers Apartments, completed in 2004, specifically targets singles. This focus may reflect the neighborhood's demographic needs or urban living trends.
Over the past decade, Loring Park has experienced notable demographic shifts. The population has grown from 7,838 in 2013 to 9,514 in 2022, a 21.4% increase. Concurrently, the median income rose from $35,161 in 2013 to $54,862 in 2022, reflecting a 56% increase. Despite this income growth, the continued development of LIHTC projects suggests an ongoing need for affordable housing options.
Racial demographics have remained relatively stable, with the white population consistently representing the majority (71-75% in recent years). There has been a slight increase in racial diversity, with small growths in Asian and multi-racial populations.
Loring Park demonstrates a substantial commitment to affordable housing through its LIHTC-funded inventory. The neighborhood's 864 LIHTC units, representing nearly a quarter of its estimated housing stock, provide crucial affordable options in an area that has seen significant population and income growth. The consistent development of LIHTC projects over almost three decades, coupled with a diverse unit mix, suggests an ongoing effort to meet varied housing needs. While the neighborhood has experienced economic growth, the continued investment in affordable housing reflects an understanding of the persistent need for such options in urban areas.
