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Affordable Housing in Elk River: LIHTC's Three-Decade 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
Elk River, Minnesota has a significant presence of affordable housing funded through the Low-Income Housing Tax Credit (LIHTC) program. The city's LIHTC-funded affordable housing inventory comprises 307 total units, with 260 designated as low-income units. Based on the 2022 population of 32,156 and an estimated 12,320 housing units, LIHTC-funded affordable housing units represent approximately 2.5% of the city's estimated housing inventory.
Elk River has received $2,326,997 in project tax credits for affordable housing through the LIHTC program. With approximately 8 projects, this translates to an average of about $290,875 in federal funding per project. The average federal funding per unit is approximately $7,580. Elk River holds 0.8% of Minnesota's total LIHTC funding, indicating a modest but significant contribution to the state's affordable housing efforts.
The city's involvement with LIHTC-funded affordable housing spans nearly three decades, from the first project, Elk Ridge Manor, completed in 1987, to the most recent, Coachman Ridge Apartments, finished in 2015. The 2010s saw the most activity, with three projects completed during this decade: Dove Tree Apartments (2011), The Depot At Elk River Station (2012), and Coachman Ridge Apartments (2015).
The LIHTC-funded housing in Elk River offers a diverse range of unit types, including 1 efficiency, 47 one-bedroom, 137 two-bedroom, and 45 three-bedroom units. This distribution suggests a focus on accommodating various household sizes and needs. One notable project, Jackson Place Apartments, completed in 2007, specifically targets singles, addressing the needs of individual residents seeking affordable housing options.
Over the past decade, Elk River has experienced steady population growth, increasing from 29,165 in 2013 to 32,156 in 2022. During this period, the median income fluctuated, peaking at $97,932 in 2019 before decreasing to $92,066 in 2022. This trend might indicate a growing need for affordable housing options.
The racial composition of Elk River has gradually diversified. While the white population remains the majority, it decreased from 93% in 2013 to 87% in 2022. Concurrently, there were slight increases in Black, Hispanic, and multi-racial populations. This demographic shift could influence the demand for diverse affordable housing options.
Elk River's LIHTC-funded affordable housing inventory, while modest in scale, plays a crucial role in addressing the city's housing needs. The city has maintained a consistent commitment to affordable housing development over nearly three decades, with increased activity in recent years. The diverse unit types cater to various household sizes, and projects like Jackson Place Apartments address specific population needs. As Elk River continues to grow and diversify, ongoing attention to affordable housing development may be necessary to meet the evolving needs of its residents.
