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Affordable Housing in Gadsden, Alabama: LIHTC's Impact on a Former Industrial Hub
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Gadsden, the county seat of Etowah County, Alabama, has a total of 481 LIHTC funded affordable housing units, with 349 designated as low-income units as of 2022. This inventory represents approximately 3.57% of the city's estimated 13,466 housing units, based on a population of 35,145 in 2022. Gadsden has received $1,620,616 in project tax credits through the LIHTC program, averaging $231,517 in federal funding per project and $3,369 per unit. The city holds 0.91% of Alabama's total LIHTC funding.
The development of LIHTC funded affordable housing in Gadsden spans from 1993 to 2009, with the most recent addition being The Lodge At Greenbridge. The 2000s were the most active period for affordable housing development, with four projects completed during this decade. The inventory includes 81 one-bedroom units, 283 two-bedroom units, 115 three-bedroom units, and 2 four-bedroom units, catering to various family sizes and needs.
One notable project is Melodie Meadow Apartments, completed in 2001, which targets individuals with mental illness, demonstrating Gadsden's efforts to address the housing needs of vulnerable populations. Despite the lack of new LIHTC projects in recent years, the existing inventory continues to play a crucial role in Gadsden's housing landscape.
Gadsden has experienced a gradual population decline over the past decade, from 38,371 in 2015 to 35,145 in 2022. However, the median income has shown an upward trend, rising from $34,145 in 2015 to $40,404 in 2022. This increase in median income may partially explain the absence of new LIHTC projects in recent years.
The racial composition of Gadsden has remained relatively stable with slight shifts. The white population has decreased from 58% in 2015 to 53% in 2022, while the Black population has increased slightly from 33% to 35%. The Hispanic population has grown from 4% to 8% during this period. These demographic changes, while gradual, may influence future affordable housing needs and planning in the city.
Gadsden's LIHTC funded affordable housing inventory represents a significant investment in addressing low-income housing needs. The city has leveraged federal funding to create a diverse range of housing options, including specialized projects for vulnerable populations. While no new LIHTC projects have been completed in the last decade, the city's changing demographics and economic indicators may influence future affordable housing strategies. The existing LIHTC inventory continues to provide necessary affordable options for Gadsden's residents.
