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Affordable Housing in Hermosa: A Two-Decade Analysis of LIHTC Projects
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Hermosa, a neighborhood in Chicago, Illinois, is characterized by its prominent Hispanic community. The Low-Income Housing Tax Credit (LIHTC) program has funded 185 affordable housing units in Hermosa, with 48 units specifically designated as low-income. This LIHTC-funded housing represents approximately 2.4% of the estimated 7,678 housing units in the neighborhood.
The LIHTC program has allocated $694,187 in tax credits for affordable housing projects in Hermosa, resulting in an average federal funding of $3,752 per unit across all LIHTC-funded projects in the area. Affordable housing development through the LIHTC program in Hermosa began in the early 2000s, with the first project, Bloomingdale Apts, completed in 2000 and the most recent project, Cortland Manor, finished in 2003.
The 2000s were the most active period for LIHTC-funded affordable housing development in Hermosa, with both projects completed during this decade. The affordable housing inventory in Hermosa includes a diverse range of unit types: 37 efficiencies, 116 one-bedroom units, 24 two-bedroom units, and 8 three-bedroom units. This distribution indicates a focus on accommodating smaller households and individuals.
Hermosa's population has remained relatively stable over the past decade, fluctuating between 20,000 and 21,000 residents. The median income in the neighborhood has shown a significant increase, rising from $40,666 in 2017 to $55,683 in 2022. This upward trend in median income may partially explain the absence of new LIHTC projects in recent years.
The racial composition of Hermosa has maintained a predominantly Hispanic character, although the percentage has slightly decreased from 87% in 2017 to 82% in 2022. Concurrently, there has been a small increase in the white population, from 5% to 9% over the same period.
In conclusion, the LIHTC-funded affordable housing inventory in Hermosa, while modest in size, has been a consistent feature of the neighborhood for over two decades. These projects provide a variety of unit types, primarily catering to smaller households. Despite rising median incomes and slight shifts in racial composition, Hermosa maintains a strong Hispanic identity. The lack of recent LIHTC developments may be related to the increasing median income, but further analysis would be necessary to confirm this relationship.
