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Affordable Housing in Minneapolis' Minnehaha Neighborhood: A Decade of LIHTC 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
The Minnehaha neighborhood in Minneapolis, Minnesota, has 37 affordable housing units funded by the Low-Income Housing Tax Credit (LIHTC) program. All of these units are designated as low-income. Based on an estimated 1,538 total housing units in the neighborhood, derived from the 2022 population of 4,013 and the national average household size, LIHTC funded affordable housing comprises approximately 2.4% of the neighborhood's housing inventory.
The LIHTC program has invested $211,418 in tax credits in Minnehaha. This equates to an average federal funding of $5,714 per unit for the LIHTC-funded project in the neighborhood. Vantage Flats, the sole LIHTC project in Minnehaha, was completed in 2008, providing over a decade of affordable housing in the area.
Vantage Flats offers a mix of unit types: 22 one-bedroom units, 12 two-bedroom units, and 3 three-bedroom units. This distribution indicates a focus on smaller households, with some capacity for families.
Minnehaha's demographics have shifted slightly over the past decade. The population increased marginally from 3,971 in 2013 to 4,013 in 2022. Median income fluctuated, rising from $71,457 in 2013 to $75,790 in 2022, with variations in between.
The racial composition remains predominantly white, with a slight decrease from 85% in 2013 to 84% in 2022. Diversity has increased minimally, with the Black population growing from 0% to 1%, and the Hispanic population from 5% to 6% during this period. The Asian population has remained stable at 1-2%.
The stable population and relatively high median income suggest that demand for additional affordable housing has not significantly increased since Vantage Flats' completion in 2008. This may explain the absence of new LIHTC projects in the area in recent years.
Minnehaha's affordable housing is characterized by Vantage Flats, providing 37 low-income units since 2008. While this project covers a small percentage of the estimated housing inventory, it offers various unit sizes for different household needs. The neighborhood's demographic trends, including stable population and relatively high median income, may explain the lack of additional LIHTC developments. However, the slight increase in racial diversity could potentially influence future affordable housing needs in the area.
