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Affordable Housing in Gothenburg, Nebraska: LIHTC Impact on a Small City
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Gothenburg, Nebraska, a city with a population of 3,661 in 2022, has implemented the Low-Income Housing Tax Credit (LIHTC) program to address its affordable housing needs. The program has resulted in 59 LIHTC-funded affordable housing units, with 53 designated as low-income units. These units represent approximately 4.2% of the city's estimated 1,403 housing units.
The LIHTC program in Gothenburg has received $186,263 in project tax credits. With three projects, this amounts to an average federal funding of $62,088 per project and $3,157 per unit. Gothenburg's share of the total state LIHTC funding is 0.16%, indicating a relatively small portion of Nebraska's affordable housing resources.
The city's LIHTC-funded housing development spans from 1997 to 2010, with the first project, Deerfield Apartments, completed in 1997 and the most recent, Jefferson Square, finished in 2010. This 13-year period demonstrates a continuous effort to develop affordable housing in Gothenburg. The late 1990s were particularly active, with two projects completed during this time.
The LIHTC-funded housing inventory in Gothenburg consists of 6 one-bedroom units and 31 two-bedroom units. This distribution suggests a focus on accommodating small families and individuals.
Gothenburg's population has experienced a slight decline over the past decade, decreasing from 3,924 in 2017 to 3,661 in 2022. However, the median income has increased from $61,667 in 2017 to $66,610 in 2022, indicating economic growth. The racial composition has remained predominantly white, with a minor increase in diversity. The Hispanic population has grown from 1% to 3%, and those identifying as two or more races have increased from 2% to 4%.
The demographic changes, particularly the rising median income, may explain the absence of new LIHTC projects in the last decade. The improving economic conditions could indicate a reduced need for additional low-income housing units.
Gothenburg's LIHTC-funded affordable housing inventory, though modest in size, represents a significant investment in addressing the city's low-income housing needs. The program has contributed to diversifying the housing stock, particularly for smaller households. While no new LIHTC projects have been developed in recent years, this aligns with the city's demographic trends of increasing median income and stable population. The existing LIHTC units continue to play a crucial role in providing affordable housing options for Gothenburg's residents.
