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Affordable Housing in Madison, Illinois: LIHTC Impact on a Declining Industrial 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
Madison, Illinois, has a notable inventory of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The city has 222 total affordable units, all of which are designated as low-income units. Based on the estimated housing inventory of 1,760 units, the LIHTC funded affordable housing covers approximately 12.6% of the city's housing stock, which is a significant proportion approaching the target range for affordable housing in a well-balanced city.
Madison has received $3,625,399 in project tax credits for affordable housing through the LIHTC program. With approximately 6 projects, this translates to an average of $604,233 in federal funding per project. When divided by the total units, it amounts to about $16,330 in federal funding per unit. The city holds 0.45% of the total state LIHTC funding, indicating its relative importance in Illinois' affordable housing landscape.
The first LIHTC project in Madison was completed in 1988 (1234-36 Madison), while the most recent was finished in 2012 (Gateway Apts). This 24-year span demonstrates a long-term commitment to affordable housing in the city. The 2000s saw the most activity, with four projects completed during this decade.
The LIHTC-funded housing stock in Madison is diverse, comprising 34 efficiencies, 16 one-bedroom units, 30 two-bedroom units, 41 three-bedroom units, and 2 four-bedroom units. This variety caters to different household sizes and needs. One notable project is the Chestnut Madison Recovery, completed in 2007, which targets individuals with mental illness. This specialized housing addresses the unique needs of a vulnerable population, potentially providing supportive services alongside affordable housing.
Over the past decade, Madison's population has steadily declined, from 6,110 in 2014 to 4,593 in 2022. Despite this decrease, the median income has risen from $26,399 in 2014 to $38,719 in 2022, suggesting an improvement in economic conditions for remaining residents. The racial composition has remained relatively stable, with a slight increase in the white population (from 46% in 2014 to 49% in 2022) and a small decrease in the Black population (from 43% to 40%). The Hispanic population has remained steady at around 7-8%. No new LIHTC projects have been recorded since 2012. This could be due to the decreasing population, which may have reduced the demand for additional affordable housing units.
Madison's LIHTC-funded affordable housing inventory represents a significant portion of its estimated housing stock. The city has received substantial federal funding for these projects over a 24-year period, with the most activity occurring in the 2000s. The housing stock is diverse, catering to various household sizes and includes specialized housing for individuals with mental illness. While the population has declined over the past decade, median incomes have risen, potentially impacting the demand for affordable housing. The existing LIHTC inventory continues to play a crucial role in providing affordable housing options for Madison's residents.
