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Affordable Housing in McKenzie, Alabama: A Three-Decade LIHTC Project
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
McKenzie, Alabama, is a small city with a population of 2,937 as of 2022. The city has one Low-Income Housing Tax Credit (LIHTC) funded affordable housing project, providing a total of 19 affordable units, all of which are designated as low-income units. Based on the estimated housing inventory of 1,125 units, the LIHTC-funded affordable housing covers approximately 1.69% of the city's housing stock.
The city has received $25,101 in project tax credits from the LIHTC program for affordable housing. This translates to an average federal funding of $25,101 per project and $1,321 per unit. McKenzie holds 1% of Alabama's total LIHTC funding.
The single LIHTC-funded project in McKenzie, Hillcross Haven, was completed in 1991. This indicates that affordable housing has been present in the city for over three decades. The 1990s saw the most affordable housing development in the city.
Hillcross Haven consists of 19 units, with 15 one-bedroom apartments and 4 two-bedroom apartments. This distribution suggests a focus on smaller household sizes in the affordable housing inventory.
Over the past decade, McKenzie has experienced fluctuations in its population. After a decline from 2010 to 2018, the population has shown a modest increase in recent years. The median income has also risen significantly, from $27,648 in 2013 to $46,455 in 2022, indicating improved economic conditions for residents.
Racial demographics have shifted notably, with the white population decreasing from 81% in 2013 to 66% in 2022, while the Black population increased from 18% to 30% during the same period. This change in racial composition suggests a growing diversity in the community.
Despite these demographic changes, no new LIHTC projects have been developed in the last decade. This could be due to the relatively small size of the city, the existing affordable housing stock meeting current needs, or other factors not captured in the available data.
McKenzie's affordable housing landscape is characterized by a single LIHTC-funded project that has been serving the community for over 30 years. While this project provides a small percentage of the city's estimated housing stock, it offers 19 dedicated low-income units. The city has experienced demographic shifts in recent years, including population fluctuations, increasing median income, and changes in racial composition. These factors, along with potential unobserved variables, may influence the need for additional affordable housing in the future.
