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Affordable Housing in Harrison: LIHTC's Impact on a Diverse Minneapolis 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
Harrison neighborhood in Minneapolis, Minnesota, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The neighborhood's LIHTC inventory comprises 278 total units, with 251 designated as low-income units. Based on the 2022 population of 3,754 and an estimated 1,438 housing units, LIHTC-funded affordable housing represents approximately 19.3% of the neighborhood's estimated housing inventory. This percentage aligns with the target range of 15-20% for affordable housing stock in a well-balanced community.
The LIHTC program has made substantial investments in Harrison, with project tax credits totaling $1,866,559. This equates to an average federal funding of about $6,714 per unit across all LIHTC-funded projects in the neighborhood. Affordable housing has been a component of Harrison's landscape for nearly three decades. The first LIHTC project, Olson Towne Homes, was completed in 1995, while the most recent, Ripley Gardens, was finished in 2007. The 2000s witnessed the most activity in LIHTC development, with two projects completed during this decade.
The LIHTC-funded housing stock in Harrison offers a range of unit types. Of the 278 total units, there are 6 efficiencies, 76 one-bedroom units, 163 two-bedroom units, and 33 three-bedroom units. This distribution indicates a focus on accommodating various household sizes, with an emphasis on small to medium-sized families. One project, Ripley Gardens, specifically targets singles as its population, potentially catering to the unique needs of individual residents.
Over the past decade, Harrison has experienced demographic shifts that may relate to its affordable housing landscape. The neighborhood's population has grown from 3,258 in 2013 to 3,754 in 2022, indicating increased housing demand. Median income has risen from $27,263 in 2013 to $43,725 in 2022, which could affect affordable housing needs.
Racial demographics have also changed. The Black population increased from 50% in 2013 to 59% in 2022, while the White population decreased from 27% to 25%. The Asian population decreased from 5% to 4%, and the Hispanic population dropped from 11% to 6%. These shifts may influence the diverse housing needs of the community.
Harrison neighborhood demonstrates a substantial commitment to affordable housing through its LIHTC-funded projects. With 19.3% of its estimated housing stock dedicated to affordable units, it closely aligns with recommended targets for a balanced community. The neighborhood's LIHTC inventory offers a variety of unit types, catering to different household sizes and needs. While no new LIHTC projects have been completed since 2007, the existing stock continues to play a crucial role in the neighborhood's housing landscape. The demographic changes over the past decade, including population growth and shifts in racial composition, underscore the ongoing importance of maintaining and potentially expanding affordable housing options to meet the evolving needs of Harrison's residents.
