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Affordable Housing in Butler, Pennsylvania: LIHTC Program's Impact on a Small Industrial City
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Butler, Pennsylvania, a small city with an industrial background, has utilized the Low-Income Housing Tax Credit (LIHTC) program to address affordable housing needs. The city's LIHTC-funded affordable housing inventory comprises 83 units, all designated as low-income units. This accounts for approximately 1.62% of the estimated 5,129 housing units in Butler, based on the 2022 population and national average household size.
The LIHTC program has allocated $617,037 in tax credits for affordable housing projects in Butler. With two funded projects, this results in an average of $308,518 in federal funding per project. The average federal funding per unit is $7,434. Butler's LIHTC funding represents 0.1% of Pennsylvania's total LIHTC allocation, indicating a small but significant contribution to the state's affordable housing efforts.
Affordable housing has been present in Butler for nearly two decades. The first LIHTC project, Under Our Wing Apartments, was completed in 2005, providing 24 efficiency units. The most recent project, Historic Lafayette Apartments, was finished in 2012, adding 59 units to the affordable housing stock. This project includes 5 efficiencies, 53 one-bedroom units, and 1 two-bedroom unit. The 2010s saw the largest addition to Butler's affordable housing inventory with the completion of the Historic Lafayette Apartments.
Butler's demographic trends over the past decade show a slight population decline, from 13,607 in 2014 to 13,387 in 2022. The median income has increased overall, rising from $30,421 in 2014 to $35,771 in 2022, despite some fluctuations. The racial composition of Butler has remained relatively stable, with a predominantly white population (88% in 2022) and small increases in diversity, particularly in the two-or-more races category (from 1% in 2014 to 5% in 2022).
The timing of LIHTC projects in Butler aligns with periods of economic transition. The completion of affordable housing projects in 2005 and 2012 may have been responses to economic challenges and changing housing needs in the city. The absence of new LIHTC projects in recent years could be attributed to the gradual increase in median income, potentially reducing the immediate demand for additional affordable housing units.
In conclusion, Butler's LIHTC-funded affordable housing represents a small but significant component of the city's housing landscape. While the current inventory covers a modest percentage of the estimated housing units, it provides essential support for low-income residents. The city's demographic trends, including a slight population decrease and gradual income growth, may influence future affordable housing needs and development strategies in Butler.
