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Affordable Housing in Downtown West: LIHTC's Impact on Urban Development
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Downtown West, a neighborhood in Minneapolis, Minnesota, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The area contains 321 total units in LIHTC funded projects, with 313 designated as low-income units. Based on the 2022 population of 8,441 and an estimated 3,234 housing units, LIHTC funded affordable housing comprises approximately 9.9% of the neighborhood's estimated housing inventory.
The LIHTC program has invested $3,611,960 in tax credits for affordable housing projects in Downtown West. This equates to an average federal funding of $11,252 per unit. The neighborhood's affordable housing development spans from 2001 to 2016, with the Salvation Army Hope Harbor completed in 2001 and both Mill City Quarter and Opportunity Housing finished in 2016.
The 2010s experienced the most significant development in affordable housing, with three projects completed during this decade. Notable projects include City Place Lofts (2013), which targets diverse populations including single heads of households with children, individual families of color, single men, and single women.
The LIHTC funded housing inventory in Downtown West primarily consists of smaller units. Of the 321 total units, there are 262 efficiencies, 49 one-bedroom units, and 10 two-bedroom units. This distribution indicates a focus on accommodating single individuals or small households.
Downtown West has experienced significant population growth, increasing from 5,246 in 2010 to 8,441 in 2022. This 61% population increase coincides with the completion of three LIHTC projects during this period. The median income has also risen substantially, from $55,562 in 2013 to $78,502 in 2022, potentially indicating a growing need for affordable housing options amidst rising living costs.
Racial demographics have shifted slightly, with the white population increasing from 58% in 2013 to 65% in 2022, while the Black population decreased from 19% to 15%, and the Asian population decreased from 15% to 10%. The Hispanic population increased from 2% to 6%. These changes in racial composition may influence the diverse needs for affordable housing in the neighborhood.
Downtown West has a notable LIHTC funded affordable housing presence, covering nearly 10% of its estimated housing inventory. The neighborhood has seen consistent development of affordable housing projects from 2001 to 2016, with a concentration of development in the 2010s. The housing stock is primarily composed of efficiency units, suggesting a focus on single-occupancy or small household needs. The significant population growth and rising median income over the past decade underscore the ongoing importance of affordable housing initiatives in this evolving neighborhood.
