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Affordable Housing in Forest Park: LIHTC's Impact on a Stable Birmingham Neighborhood
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Forest Park, a neighborhood in Birmingham, Alabama, contains Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The neighborhood has 64 units in LIHTC funded projects, with 54 designated as low-income units. Based on an estimated 1,512 housing units in the neighborhood, LIHTC funded affordable housing comprises approximately 4.2% of the neighborhood's housing inventory.
The LIHTC program has invested in Forest Park, with project tax credits totaling $518,241. This equates to an average federal funding of $8,097 per unit in LIHTC funded projects. The neighborhood's affordable housing is characterized by a single project, Avondale Gardens, completed in 2001. This project has provided affordable housing options in Forest Park for over two decades.
Avondale Gardens offers various unit types to accommodate different household sizes. The project includes 46 one-bedroom units, 6 two-bedroom units, and 12 three-bedroom units. This distribution indicates a focus on housing smaller households and families. Notably, Avondale Gardens targets individuals with mental illness, suggesting an effort to address the housing needs of a specific vulnerable population.
Forest Park has experienced demographic shifts over the past decade. The population has remained relatively stable, decreasing slightly from 4,470 in 2020 to 3,946 in 2022. Median income has fluctuated, peaking at $78,577 in 2021 before declining to $72,667 in 2022.
The racial composition has remained fairly consistent, with a slight increase in diversity. The white population has maintained a majority at approximately 75%, while the Black population has decreased slightly from 18% to 19% between 2020 and 2022. There has been a minor increase in the Asian population and those identifying as two or more races.
The absence of new LIHTC projects in the last decade, combined with these demographic trends, may indicate a relatively stable housing market with potentially reduced demand for additional low-income housing. However, other affordable housing programs may be addressing any unmet needs.
Forest Park's affordable housing landscape is defined by Avondale Gardens, a single LIHTC project serving the community for over 20 years. This project, focusing on individuals with mental illness, demonstrates a targeted approach to affordable housing. While LIHTC funded units represent a small portion of the neighborhood's estimated housing inventory, they serve a crucial role in providing affordable options, particularly for a specific vulnerable population. The neighborhood's demographic trends over the past decade suggest a relatively stable community, which may explain the lack of new LIHTC developments in recent years.
