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Affordable Housing in North Birmingham: LIHTC's 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
North Birmingham, a neighborhood in Birmingham, Alabama, has a notable presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The neighborhood's LIHTC inventory comprises 48 affordable units, all designated as low-income units. Based on an estimated housing inventory of approximately 706 units, LIHTC funded affordable housing represents about 6.8% of the neighborhood's housing stock. This percentage indicates that LIHTC projects contribute to the area's affordable housing needs, although it falls below the 15-20% target considered ideal for a well-balanced community.
The LIHTC program has invested $33,488 in tax credits for affordable housing projects in North Birmingham. This investment amounts to approximately $698 of federal funding per unit when divided by the total number of units (48). The neighborhood's LIHTC funded affordable housing is represented by a single project, Virginia Manor, completed in 1990. This project has provided affordable housing in the neighborhood for over three decades.
Virginia Manor consists of 48 two-bedroom units, offering housing options suitable for small families or individuals requiring additional space. The project does not have a specified target population, suggesting it may serve a diverse range of low-income residents.
North Birmingham has experienced a population decline over the past decade, from 2,449 in 2014 to 1,842 in 2022. Despite this decrease, the median income has shown a positive trend, rising from $15,882 in 2014 to $27,086 in 2022. This increase in median income could potentially affect the demand for affordable housing in the area.
The racial composition of North Birmingham has remained predominantly Black, with a slight increase in diversity in recent years. In 2022, the neighborhood was 91% Black, 8% Hispanic, and 1% White. This demographic profile emphasizes the importance of ensuring that affordable housing opportunities are accessible to all residents, particularly those from historically marginalized communities.
North Birmingham's LIHTC funded affordable housing inventory, while present, covers a relatively small portion of the estimated housing stock. The single project, Virginia Manor, has been providing affordable two-bedroom units for over 30 years. Despite a declining population, the neighborhood has seen an increase in median income over the past decade. The racial composition remains predominantly Black, with a recent increase in Hispanic residents. These demographic shifts may influence future affordable housing needs and development in the area.
