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Affordable Housing in Downtown West Palm Beach: A Single LIHTC Project's 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
Downtown West Palm Beach, Florida, is an urban neighborhood that has experienced significant population growth. From 2010 to 2022, the population increased from 3,222 to 6,719. The neighborhood contains one Low-Income Housing Tax Credit (LIHTC) funded project, which provides 49 affordable units. All of these units are designated as low-income. Based on an estimated 2,574 housing units in the neighborhood, the LIHTC funded affordable housing represents approximately 1.9% of the neighborhood's housing inventory.
The LIHTC program has allocated $380,952 in tax credits for affordable housing in Downtown West Palm Beach. This equates to an average federal funding of $7,774 per unit when divided by the total 49 units in the LIHTC funded project. The sole LIHTC project in the neighborhood, Ballet Villages I, was completed in 1996, indicating that affordable housing through the LIHTC program has been present for over 25 years.
The project consists of 49 units with a variety of sizes: 12 one-bedroom units, 31 two-bedroom units, and 6 three-bedroom units. This distribution suggests accommodation for small to medium-sized households.
Downtown West Palm Beach has experienced significant population growth over the past decade, increasing from 4,312 in 2013 to 6,719 in 2022. During this period, the median income rose from $57,949 in 2013 to $69,050 in 2022, indicating an improvement in economic conditions. The racial composition of the neighborhood has remained relatively stable, with a slight decrease in the white population from 79% in 2013 to 69% in 2022. There have been modest increases in Asian, Black, and Hispanic populations.
Despite the population growth and demographic changes, no new LIHTC projects have been developed in the last decade. This could be attributed to various factors, including the rising median income, which may have reduced the perceived need for additional affordable housing units, or potential challenges in securing funding for new projects.
Downtown West Palm Beach has a single LIHTC funded affordable housing project, Ballet Villages I, which has provided 49 low-income units since 1996. While this project contributes to the neighborhood's affordable housing stock, it represents a small percentage of the overall housing inventory. The neighborhood has experienced significant population growth and increasing median income over the past decade, which may have influenced the lack of new LIHTC developments during this period. The existing LIHTC project continues to play a role in providing affordable housing options in an area that has seen economic growth and demographic changes.
