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Affordable Housing in Golden Valley: LIHTC's Role in Suburban 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
Golden Valley, Minnesota, has incorporated Low-Income Housing Tax Credit (LIHTC) funded affordable housing into its urban landscape. The city's LIHTC inventory comprises 315 total units, with 228 designated as low-income units. Based on the 2022 population of 22,142 and an estimated 8,484 housing units, LIHTC-funded affordable housing represents approximately 3.7% of the city's total housing stock.
Golden Valley has received $1,813,735 in project tax credits through the LIHTC program. With approximately 6 projects, this equates to an average of $302,289 federal funding per project, or $5,758 per unit. Golden Valley holds 0.62% of Minnesota's total LIHTC funding allocation.
The city's involvement with LIHTC-funded housing spans nearly two decades, from the earliest project, Medley Park, completed in 2000, to the most recent, Minnetonka Affordable Housing, finished in 2018. The 2010s saw the most activity, with three projects completed during this decade: Dover Hill (2012), Cornerstone Creek (2017), and Minnetonka Affordable Housing (2018).
The LIHTC-funded units in Golden Valley primarily consist of one and two-bedroom apartments, with 136 one-bedroom and 111 two-bedroom units. There are also 31 three-bedroom units and 1 four-bedroom unit, providing options for various household sizes.
Over the past decade, Golden Valley has experienced steady population growth, increasing from 20,439 in 2012 to 22,142 in 2022. This 8.3% growth may have contributed to the need for additional affordable housing options. The median income has also risen significantly, from $96,392 in 2013 to $105,629 in 2022, potentially increasing the affordability gap for lower-income residents.
Racial demographics have remained relatively stable, with a slight decrease in the white population from 84% in 2018 to 81% in 2022, and small increases in black (4% to 6%) and Hispanic (2% to 4%) populations. This gradual diversification might influence future affordable housing needs and planning.
Golden Valley's LIHTC-funded affordable housing inventory, at 3.7% of the estimated housing stock, represents a consistent effort to provide affordable options over the past two decades. The city has leveraged federal funding to create 315 units across approximately 6 projects. With a growing and diversifying population, coupled with rising median incomes, affordable housing may continue to be a relevant issue for Golden Valley in the coming years.
