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Affordable Housing in Birmingham: LIHTC's Impact on Urban Housing Landscape
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Birmingham, Alabama, the largest city in the state, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The city's LIHTC inventory comprises 2,487 total units, with 1,994 designated as low-income units. This represents approximately 3.3% of the city's estimated housing stock of 75,231 units.
Birmingham has received $10,922,061 in project tax credits through the LIHTC program. With approximately 40 projects, this translates to an average federal funding of $273,052 per project and $4,392 per unit. The city holds 6.13% of Alabama's total LIHTC funding, indicating a significant portion of the state's affordable housing investment.
Affordable housing has been present in Birmingham for nearly three decades. The first LIHTC projects, College Hills Apartments and Quinlan Castle, were completed in 1988. The most recent project, Highland Manor, was completed in 2017. The 1990s saw the most affordable housing development, with 21 projects completed during that decade.
The LIHTC-funded housing stock in Birmingham offers a diverse range of unit types. Out of the total 2,487 units, there are 5 efficiencies, 634 one-bedroom units, 930 two-bedroom units, 273 three-bedroom units, and 12 four-bedroom units. This distribution caters to various household sizes and needs.
Several projects in Birmingham target specific populations. East Birmingham Manor, Pinetree Apartments, Avondale Gardens, Carson Landing Apartments, and Park Place I are designed to serve individuals with mental illness, addressing a crucial need in the community.
Over the past decade, Birmingham's population has shown a declining trend, decreasing from 212,744 in 2017 to 196,353 in 2022. Despite this population decrease, the median income has increased from $33,553 in 2017 to $39,326 in 2022, indicating some economic improvement.
Racial demographics have remained relatively stable, with a slight increase in the Black population from 67% in 2019 to 71% in 2022. The White population decreased slightly from 25% to 22% during the same period. The Hispanic population has remained steady at around 3-5%.
The lack of new LIHTC projects since 2017 may be related to the declining population and increasing median income, potentially reducing the perceived need for additional affordable housing units.
Birmingham's LIHTC-funded affordable housing inventory represents a small but significant portion of the city's housing stock. The program has provided nearly $11 million in tax credits, supporting 40 projects over three decades. While the city has experienced population decline and income growth in recent years, the existing LIHTC projects continue to serve diverse needs, including specialized housing for individuals with mental illness. The distribution of unit types suggests an effort to accommodate various household sizes within the affordable housing framework.
