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Affordable Housing in North Pratt: LIHTC's Long-term 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 Pratt, a neighborhood in Birmingham, Alabama, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The neighborhood's LIHTC inventory comprises 156 total units, with 57 designated as low-income units. Based on the 2022 population of 1,739 and using the national average household size, the estimated housing inventory is approximately 666 units. The LIHTC funded affordable housing represents about 23.4% of the neighborhood's estimated housing units, indicating a substantial contribution to the area's affordable housing needs.
The LIHTC program has invested $458,326 in tax credits for affordable housing projects in North Pratt. This equates to an average federal funding of about $2,938 per unit across all LIHTC-funded projects in the neighborhood. North Pratt has benefited from LIHTC-funded affordable housing for nearly three decades, with the first project, Southampton Villas, completed in 1993, and the most recent, New Haven Apts, finished in 1998.
The 1990s witnessed the most affordable housing development in North Pratt, with both LIHTC projects completed during this decade. The inventory of affordable housing units in the neighborhood is diverse, consisting of 12 one-bedroom units, 106 two-bedroom units, and 38 three-bedroom units. This distribution indicates a focus on accommodating various household sizes, with a particular emphasis on two-bedroom units.
Over the past decade, North Pratt has experienced demographic shifts. The population decreased from 1,908 in 2019 to 1,739 in 2022, representing a decline of about 8.9%. Despite this population decrease, the median income has shown a positive trend, increasing from $30,487 in 2019 to $35,370 in 2022, a rise of approximately 16%.
Racial demographics have also evolved, with the Black population percentage decreasing from 95% in 2019 to 83% in 2022. Concurrently, there has been an increase in the "Other" race category, growing from 0% to 11% during the same period. The White population has remained relatively stable, fluctuating between 3-5% over the past few years.
These demographic changes, particularly the increase in median income and the slight diversification of the racial makeup, may influence future affordable housing needs in the neighborhood. While no new LIHTC projects have been developed in the last decade, the existing inventory continues to play a crucial role in providing affordable housing options for North Pratt residents.
North Pratt's LIHTC-funded affordable housing inventory, developed in the 1990s, continues to be a significant component of the neighborhood's housing stock, covering nearly a quarter of the estimated housing units. The neighborhood has experienced demographic shifts in recent years, including a slight population decline, increased median income, and some changes in racial composition. These factors may influence future affordable housing needs and development in the area. The existing LIHTC projects, with their diverse unit sizes, continue to provide important housing options for low-income residents in North Pratt.
