Loading Content...
Affordable Housing Dynamics in Louisville's Algonquin Neighborhood: LIHTC Impact and Demographic Shifts
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
Loading Content...
Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
The Algonquin neighborhood in Louisville, Kentucky, possesses a notable Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. As of 2022, the neighborhood's population stood at 7,567 residents. The LIHTC program has financed a total of 416 units in affordable housing projects, with 311 units specifically designated as low-income. Based on an estimated 2,899 housing units in the neighborhood, LIHTC funded affordable housing comprises approximately 14.3% of the neighborhood's housing inventory, aligning closely with the target percentage for a well-balanced community.
The LIHTC projects in Algonquin have received $4,994,321 in project tax credits, equating to an average federal funding of about $12,005 per unit. The neighborhood has experienced LIHTC funded affordable housing development over a 15-year period, from 1997 to 2012. The initial project, St. George School, was completed in 1997, while the most recent, California Square I, was finished in 2012.
The early 2000s marked the peak of affordable housing activity in Algonquin. In 2001, three projects were completed: Linton Homes, Neighborhood Redevelopment A, and California Single Family Homes. This period signified a substantial expansion of affordable housing options in the neighborhood.
The LIHTC funded projects in Algonquin offer a range of housing options. There are 198 one-bedroom units, 24 two-bedroom units, 108 three-bedroom units, and 68 four-bedroom units. This distribution indicates a focus on accommodating various household sizes, from individuals to larger families.
Over the past decade, Algonquin's population has fluctuated, reaching a peak of 8,620 in 2018 before declining to 7,567 in 2022. Despite this recent decrease, the overall trend shows population growth compared to 2010. The median income has increased steadily from $19,623 in 2013 to $26,852 in 2022, suggesting improving economic conditions for residents.
The racial composition of Algonquin has experienced shifts. The Black population has decreased from 74% in 2013 to 59% in 2022, while the White population has increased from 23% to 30% during the same period. The Hispanic population has grown from less than 1% to 6%, indicating increasing diversity in the neighborhood.
These demographic changes, particularly the rising median income, may explain the absence of new LIHTC projects since 2012. The improving economic conditions could suggest a reduced need for additional affordable housing units in recent years.
Algonquin's LIHTC funded affordable housing inventory represents a significant portion of the neighborhood's housing stock, aligning closely with recommended targets for balanced communities. The neighborhood experienced substantial affordable housing development in the early 2000s, providing a diverse range of unit sizes to accommodate various household needs. While no new LIHTC projects have been developed in the past decade, this aligns with demographic trends showing rising median incomes and population fluctuations. The existing LIHTC funded units continue to play a crucial role in providing affordable housing options for Algonquin's residents.
