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Affordable Housing in Holly Springs: LIHTC Impact on a Growing North Carolina Town
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Holly Springs, a town in North Carolina, has experienced significant growth in recent years. The Low-Income Housing Tax Credit (LIHTC) program has contributed to the affordable housing inventory in Holly Springs, with a total of 217 units in LIHTC-funded projects, of which 214 are designated as low-income units. Based on the estimated housing inventory of 23,640 units, the LIHTC-funded affordable housing comprises approximately 0.92% of the town's housing stock.
Holly Springs has received $1,876,026 in project tax credits through the LIHTC program. With approximately 5 projects, this translates to an average of $375,205 in federal funding per project. When considering the total units, the average federal funding amounts to $8,645 per unit. Holly Springs accounts for 0.43% of the total LIHTC funding allocated to North Carolina.
The town's affordable housing journey through LIHTC spans from 1989 to 2015. The first project, Timber Springs Apartments, was completed in 1989, while the most recent addition, Holly Woods At Sunset Lake, was finished in 2015. This 26-year period demonstrates a long-standing commitment to affordable housing in Holly Springs.
The 1990s saw the most affordable housing activity, with three projects completed during this decade: Timber Springs Apartments (1989), Maple Ridge Apartments (1994), and Maple Ridge Apartments Phase II (1996).
The LIHTC-funded units in Holly Springs are predominantly comprised of one-bedroom and two-bedroom units. Specifically, there are 67 one-bedroom units, 106 two-bedroom units, and 44 three-bedroom units. This distribution suggests a focus on accommodating smaller households and families.
Over the past decade, Holly Springs has experienced rapid population growth, increasing from 40,147 in 2013 to 61,701 in 2022. This growth rate of over 50% indicates a strong demand for housing in general. Concurrently, the median income has risen from $96,699 in 2013 to $117,869 in 2022, representing a 21.9% increase.
Despite the population growth and rising incomes, there has not been a corresponding increase in LIHTC-funded affordable housing projects since 2015. This could be due to the town's relatively high median income, which may reduce the perceived need for additional affordable housing units.
The racial composition of Holly Springs has remained relatively stable over the past decade, with a slight increase in diversity. The white population has decreased marginally from 77% in 2013 to 74% in 2022, while there have been small increases in Asian and Hispanic populations.
Holly Springs' LIHTC-funded affordable housing inventory represents a small but significant portion of its housing stock. The town has benefited from federal funding for affordable housing over a 26-year period, with a focus on one- and two-bedroom units. Despite rapid population growth and rising incomes in the past decade, there has not been recent LIHTC activity. This analysis provides insights into the affordable housing landscape in Holly Springs, highlighting the need for ongoing assessment of housing needs in this growing community.
