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Affordable Housing in Melrose, Minnesota: A Single LIHTC Project's Impact
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Melrose, a city in Minnesota, maintains a modest Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. The city's total housing stock includes 25 affordable housing units, of which 24 are designated as low-income units. These LIHTC-funded units represent approximately 1.36% of the city's estimated 1,841 housing units.
The LIHTC program has provided Melrose with $35,085 in project tax credits. This funding supports one project, resulting in an average federal funding of $35,085 per project and $1,403 per unit. Melrose's share of the total state LIHTC funding in Minnesota is 0.01%.
Oak Ridge Manor, completed in 2009, is the sole LIHTC project in Melrose. This development comprises the entirety of the city's LIHTC-funded affordable housing, indicating that such housing has been available in the city for over a decade. Oak Ridge Manor consists of 25 one-bedroom units, catering to individuals or small families, with no efficiencies or larger units reported in this development.
Melrose has experienced demographic changes over the past decade. The population has grown from 4,414 in 2014 to 4,806 in 2022, showing a modest increase. Median income fluctuated, rising from $45,700 in 2014 to a peak of $61,702 in 2019, before declining to $54,684 in 2022. This trend may indicate an increased need for affordable housing options.
The racial distribution in Melrose has remained relatively stable. The white population consistently represents the majority. The Hispanic population decreased from 22% in 2014 to 13% in 2022, while other racial groups maintained minimal representation.
Melrose's LIHTC-funded affordable housing inventory consists solely of Oak Ridge Manor, completed in 2009. This development provides 25 one-bedroom units, with 24 designated as low-income. The LIHTC program contributes to the city's affordable housing stock, albeit covering a small percentage of the estimated housing inventory. Over the past decade, Melrose has experienced modest population growth and income fluctuations, potentially influencing the demand for affordable housing. Despite these demographic changes, no new LIHTC projects have been developed in recent years, suggesting that other housing programs or factors may be addressing the city's affordable housing needs.
