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Affordable Housing in Hanceville: LIHTC's Impact on a Small Alabama 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
Hanceville, Alabama, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The city's LIHTC inventory comprises 106 total affordable units, all designated as low-income units. Based on the 2022 population of 4,387 and an estimated housing inventory of 1,681 units, LIHTC funded affordable housing represents approximately 6.3% of the city's estimated housing stock.
Hanceville has received $428,658 in project tax credits for affordable housing through the LIHTC program. With four projects, this amounts to an average of $107,165 in federal funding per project, or about $4,044 in federal funding per unit. Hanceville's share of Alabama's total LIHTC funding is 0.24%, indicating a modest but notable contribution to the state's affordable housing efforts.
The city's engagement with LIHTC funded affordable housing began in 1990 with the completion of Hanceville Manor Apartments and Hanceville Village Apartments. The most recent project, Autumnwood Apartments, was completed in 2003, marking over a decade of affordable housing development in Hanceville.
The 1990s saw the most activity in affordable housing development, with three out of the four projects completed during this decade. The distribution of units includes 56 one-bedroom, 42 two-bedroom, and 8 three-bedroom units, accommodating various household sizes.
Over the past decade, Hanceville's population has remained relatively stable, fluctuating between 4,300 and 4,600 residents. The median income has shown a general upward trend, increasing from $32,452 in 2013 to $39,617 in 2022. This rise in median income may partially explain the absence of new LIHTC projects in recent years.
The racial composition of Hanceville has remained predominantly white, consistently above 85% throughout the past decade. However, there has been a slight increase in diversity, with the Hispanic population growing from 1% in 2013 to 5% in 2022, and the Black population maintaining around 3-5% of the total.
Hanceville's LIHTC funded affordable housing inventory provides a foundation for addressing low-income housing needs. The city's four LIHTC projects, developed between 1990 and 2003, offer 106 affordable units, covering about 6.3% of the estimated housing stock. The stability in population and gradual increase in median income over the past decade may have influenced the pace of affordable housing development. As Hanceville continues to evolve demographically, ongoing assessment of affordable housing needs will be crucial to ensure adequate support for low-income residents.
