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Affordable Housing in Okolona: LIHTC Impact on Neighborhood Diversity
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CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
Okolona, a neighborhood in Louisville/Jefferson County, Kentucky, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The area has 505 total units in LIHTC funded projects, with 504 designated as low-income units. This inventory plays a role in addressing the neighborhood's affordable housing needs.
Based on the 2022 population of 24,985 and an estimated 9,573 housing units, LIHTC funded affordable housing covers approximately 5.3% of the neighborhood's estimated housing inventory. This contribution falls short of the 15-20% target for affordable housing stock in a well-balanced community.
The LIHTC program has invested in Okolona, with project tax credits totaling $3,736,049. This equates to an average federal funding of about $7,398 per unit, demonstrating a commitment to affordable housing in the area.
Affordable housing has been part of Okolona's landscape for over two decades. The earliest LIHTC projects, Forest Drive Single Family Homes, Ltd. and O'Connor Square Apartments, were completed in 2001. The most recent addition, Willow Place Apartments, was finished in 2013, spanning a 12-year period of affordable housing development.
The 2000s saw the most activity in affordable housing construction, with five out of seven projects completed during this decade. Notable projects from this period include Falcon Crest Apartments (2005), Terrace Place Apartments (2006), and Serenity Court Apartments (2007).
The LIHTC funded housing in Okolona offers a range of unit types. The inventory includes 87 one-bedroom units, 302 two-bedroom units, 106 three-bedroom units, and 1 four-bedroom unit. This distribution suggests a focus on accommodating families of various sizes within the affordable housing stock.
Over the past decade, Okolona has experienced demographic shifts that may correlate with its LIHTC housing inventory. The population has shown slight fluctuations, growing from 23,564 in 2017 to 24,985 in 2022. Median income has increased from $46,210 in 2017 to $48,824 in 2022, indicating a modest improvement in economic conditions.
Racial demographics have evolved, with the white population decreasing from 63% in 2017 to 51% in 2022, while the Black population increased from 16% to 24%, and the Hispanic population grew from 16% to 20%. This increasing diversity might reflect changing housing needs in the neighborhood.
No new LIHTC projects have been completed since 2013, despite these demographic changes. This could suggest that the existing affordable housing stock has been sufficient to meet demand, or that other factors have influenced the development of new LIHTC projects in recent years.
Okolona's LIHTC funded affordable housing inventory represents an investment in addressing the neighborhood's low-income housing needs. With 505 total units, predominantly consisting of two and three-bedroom apartments, these projects cater to a variety of household sizes. The neighborhood has seen a steady development of affordable housing over a 12-year period, with the most activity occurring in the 2000s. While the LIHTC funded units cover about 5.3% of the estimated housing inventory, there may be room for additional affordable housing to meet the ideal target of 15-20%. The demographic shifts over the past decade, including increased diversity and modest income growth, may influence future affordable housing needs in Okolona.
