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Affordable Housing in Homestead: LIHTC Impact on a Historic Pennsylvania 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
Homestead, located in Pennsylvania, is part of the Pittsburgh metropolitan area. The city's Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory comprises 191 total units, with 83 designated as low-income units. Based on an estimated housing inventory of 1,113 units, LIHTC funded affordable housing represents approximately 17.2% of the city's housing stock, aligning with the target percentage for affordable housing in a balanced community.
Homestead has received $2,759,342 in project tax credits through the LIHTC program. With approximately 6 projects, this translates to an average federal funding of $459,890 per project. The average federal funding per unit is approximately $14,447. Homestead holds 0.46% of Pennsylvania's total state LIHTC funding, indicating a significant investment in affordable housing for a borough of its size.
The city's LIHTC funded affordable housing development began in 1987 with the "353 W 12Th Ave" project and continued through 2007 with the completion of "Homestead Apts IV." This 20-year span demonstrates a sustained commitment to affordable housing development. The early 2000s saw the most activity, with four projects completed between 2002 and 2005, including "Homestead Apts," "Heritage Court Elderly Housing," and "Homestead Apts II" and "III."
The LIHTC funded housing stock in Homestead primarily consists of one-bedroom and two-bedroom units, with 138 and 53 units respectively. This distribution suggests a focus on accommodating smaller households and potentially elderly residents.
Analyzing demographic trends over the past decade, Homestead has experienced a slight decrease in population, from 3,170 in 2019 to 2,905 in 2022. Despite this decline, the median income has shown a gradual increase, rising from $25,889 in 2019 to $27,826 in 2022. This income growth, while positive, still indicates a need for affordable housing options.
Racial demographics have remained relatively stable, with the Black population consistently representing the majority at around 60-61% in recent years. The White population has slightly decreased from 33% to 30% between 2020 and 2022, while there has been a small increase in residents identifying as two or more races, reaching 5% in 2022.
In summary, Homestead's LIHTC funded affordable housing inventory plays a crucial role in meeting the community's housing needs. The borough has maintained a steady development of affordable housing projects over two decades, with a concentration of activity in the early 2000s. While the population has slightly decreased, the continued need for affordable housing is evident from the income levels and demographic composition. The current inventory aligns well with recommended affordable housing stock percentages, suggesting a balanced approach to housing diversity in Homestead.
