Affordable Housing in Mobile Terrace: LIHTC Impact on a Changing Neighborhood

CATEGORY

Affordable Housing

DATA

LIHTC Projects

Median Income

Racial Distributions

Population

DATA SOURCE

United States Census Bureau: American Community Survey Data (ACS)
US Department of Housing and Urban Development (HUD): Low-Income Housing Tax Credit Properties (LIHTC)

Mobile Terrace, a neighborhood in Mobile, Alabama, has a small but significant Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. The neighborhood has 7 affordable units, all designated as low-income. Based on the 2022 population of 590 and an estimated 226 housing units, LIHTC-funded affordable housing comprises approximately 3.1% of the neighborhood's estimated housing inventory.

The LIHTC program has invested $1,211,203 in tax credits for affordable housing in Mobile Terrace. This equates to an average federal funding of $173,029 per unit, representing a substantial investment in affordable housing options for the community.

The neighborhood's LIHTC-funded affordable housing consists of one project, the Arbours At Pierce Creek, completed in 2016. This project marks the introduction of LIHTC-funded affordable housing in Mobile Terrace, indicating a relatively recent focus on addressing affordable housing needs in the area.

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The Arbours At Pierce Creek project comprises 7 units in total, with a mix of one-bedroom and two-bedroom units. Specifically, there is 1 one-bedroom unit and 6 two-bedroom units, providing options for different household sizes within the low-income community.

Over the past decade, Mobile Terrace has experienced demographic shifts that may correlate with the introduction of LIHTC-funded affordable housing. The population has remained relatively stable, fluctuating between 473 and 766 residents. However, there has been a notable increase in median income, rising from $13,671 in 2018 to $29,165 in 2022.

Racial demographics have also shifted during this period. The Black population has increased from 59% in 2018 to 74% in 2022, while the White population has decreased from 33% to 12%. The Hispanic population has slightly increased from 7% to 13% during the same period.

The introduction of the LIHTC-funded project in 2016 coincides with these demographic changes, potentially indicating a response to evolving housing needs in the neighborhood.

Mobile Terrace's LIHTC-funded affordable housing inventory represents a significant investment in addressing low-income housing needs. The single project, Arbours At Pierce Creek, provides 7 units of affordable housing, covering about 3.1% of the estimated housing inventory. With an average federal investment of $173,029 per unit, this project demonstrates a substantial commitment to affordable housing in the neighborhood.

The demographic trends over the past decade, including changes in racial composition and a notable increase in median income, provide context for the timing of the LIHTC project's completion in 2016. As the neighborhood continues to evolve, ongoing assessment of affordable housing needs will be crucial to ensure that the housing stock aligns with the community's changing demographics and economic conditions.

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