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Affordable Housing in Otay Ranch: LIHTC Impact on a Growing 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
Otay Ranch, a neighborhood in Chula Vista, California, has a notable presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The neighborhood's LIHTC inventory consists of 506 total units, with 500 of these designated as low-income units. This significant number of affordable housing units contributes substantially to the neighborhood's housing landscape.
Based on the 2022 population of 45,976 and using the national average household size of 2.61, there are approximately 17,615 housing units in Otay Ranch. The LIHTC funded affordable housing units represent about 2.87% of this estimated housing inventory. This percentage is lower than the target of 15-20% for affordable housing stock.
The LIHTC program has invested significantly in Otay Ranch, with project tax credits totaling $5,157,906. This translates to an average federal funding of approximately $10,193 per unit in LIHTC-funded projects. This investment demonstrates a commitment to creating affordable housing options in the neighborhood.
Affordable housing has been a part of Otay Ranch for over a decade. The first LIHTC project, The Landings, was completed in 2008, while the most recent, Heritage Apartments, was finished in 2019. This 11-year span shows ongoing efforts to provide affordable housing in the area.
The 2010s saw the most LIHTC activity in Otay Ranch, with three projects completed during this decade. These projects include The Landings II (2011) and Heritage Apartments (2019), in addition to The Landings from 2008.
The LIHTC-funded housing in Otay Ranch offers a diverse range of unit types. The inventory includes 9 one-bedroom units, 258 two-bedroom units, 146 three-bedroom units, and 12 four-bedroom units. This variety caters to different household sizes and needs within the low-income population.
Over the past decade, Otay Ranch has experienced significant population growth, increasing from 23,506 in 2010 to 45,976 in 2022. This nearly 96% increase in population could indicate a growing need for affordable housing options.
The median income in Otay Ranch has also risen substantially, from $105,065 in 2013 to $128,605 in 2022. Despite this increase, the continued development of LIHTC projects suggests an ongoing need for affordable housing, possibly due to income disparities within the growing population.
Racial demographics in Otay Ranch have remained relatively stable over the past decade. The Hispanic population has consistently been the largest group, representing about 44% of the population in 2022. The Asian population has grown slightly from 24% in 2013 to 23% in 2022, while the White population has decreased from 22% to 19% over the same period. This diversity might influence the need for culturally sensitive affordable housing options.
Otay Ranch's LIHTC-funded affordable housing inventory, while representing a small percentage of the estimated total housing units, provides important housing options for low-income residents. The neighborhood has seen consistent investment in affordable housing over the past decade, coinciding with significant population growth and increasing median income. The diverse unit types offered through LIHTC projects cater to various household sizes within the low-income population. As Otay Ranch continues to grow and evolve, monitoring the balance between affordable housing supply and demographic changes will be crucial for addressing the community's housing needs.
