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Affordable Housing in New Duluth: LIHTC Impact on a Changing Neighborhood
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
New Duluth, a neighborhood in Duluth, Minnesota, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The neighborhood contains 61 total units in LIHTC-funded projects, with 6 designated as low-income units. Based on the 2022 population of 641 and using the national average household size, the estimated number of housing units in the neighborhood is approximately 246. The LIHTC-funded affordable housing represents about 24.8% of the estimated housing inventory, exceeding the target percentage for affordable housing stock in a well-balanced community.
The LIHTC program has invested $224,339 in tax credits for affordable housing projects in New Duluth. This equates to an average federal funding of approximately $3,678 per unit across all LIHTC-funded units in the neighborhood.
The Heritage Senior Apartments, completed in 2018, is the most recent and significant LIHTC project in New Duluth. This development comprises the entirety of the neighborhood's LIHTC-funded housing inventory. The project includes a mix of unit types: 1 efficiency, 52 one-bedroom units, and 8 two-bedroom units. This distribution indicates a focus on accommodating smaller households, particularly suitable for seniors or individuals living alone.
New Duluth has experienced demographic changes over the past decade. The population has decreased from 864 in 2013 to 641 in 2022, a decline of about 25.8%. Despite this population decrease, the median income has increased from $43,931 in 2013 to $56,413 in 2022, a rise of approximately 28.4%.
The racial composition of New Duluth has remained predominantly white, with a slight decrease from 96% in 2013 to 93% in 2022. There has been a minor increase in diversity, with slight growth in the Hispanic population and those identifying as two or more races or other races.
The completion of the Heritage Senior Apartments in 2018 coincides with the period of population decline and increasing median income. This suggests that the project may have been developed to address changing housing needs in the neighborhood, potentially catering to an aging population or attracting new residents.
New Duluth's affordable housing landscape is primarily shaped by the Heritage Senior Apartments, a LIHTC-funded project completed in 2018. This development represents a significant portion of the neighborhood's estimated housing inventory, providing 61 units with a focus on smaller living spaces. The neighborhood has experienced population decline and income growth over the past decade, with the LIHTC project potentially responding to evolving community needs. While the racial composition remains predominantly white, there are indications of increasing diversity. The LIHTC investment in New Duluth demonstrates a commitment to providing affordable housing options, particularly for seniors, in this evolving neighborhood context.
