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Affordable Housing in Penn Plaza: LIHTC's Substantial Impact on Manhattan 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
Penn Plaza, located in Manhattan, New York, is a neighborhood with a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The area contains 1,500 units in LIHTC funded projects, with 846 designated as low-income units. Based on the 2022 population of 3,519 and using the national average household size, the estimated housing inventory for the neighborhood is approximately 1,348 units. LIHTC funded affordable housing covers about 111% of the estimated housing inventory, indicating its substantial presence in the neighborhood.
The LIHTC program has invested considerably in Penn Plaza, with project tax credits totaling $4,901,302. This equates to an average federal funding of approximately $3,267 per unit across all LIHTC funded projects in the neighborhood. Affordable housing has been a consistent feature of Penn Plaza, with projects spanning from 1991 to 2016. The first LIHTC project, Sloan House, was completed in 1991, while the most recent, 855 Avenue Of The Americas, was finished in 2016. This 25-year period demonstrates a sustained commitment to affordable housing in the area.
The 2000s saw the most activity in LIHTC project completions, with three projects finished during this decade: Chelsea Place (2001), 125 W 31St St (2007), and 353-355 West 30Th Street (2008). The LIHTC funded housing in Penn Plaza offers a diverse range of unit types. Of the 1,500 total units, there are 791 efficiencies, 649 one-bedroom units, 59 two-bedroom units, and 1 three-bedroom unit. This distribution suggests a focus on accommodating smaller households or individuals.
Over the past decade, Penn Plaza has experienced population growth, with the number of residents increasing from 2,653 in 2013 to 3,519 in 2022. During this period, the median income has fluctuated, starting at $125,899 in 2013 and ending at $116,492 in 2022, showing a slight overall decrease. The racial composition of the neighborhood has also evolved. The proportion of Asian residents increased from 21% in 2013 to 31% in 2022. The white population decreased from 56% to 40% during the same period. The Hispanic population saw a slight increase from 12% to 15%, while the Black population grew from 6% to 10%.
These demographic shifts, particularly the increase in population and the growing diversity, may have influenced the need for affordable housing in the area. The completion of the 855 Avenue Of The Americas project in 2016 aligns with these demographic changes, suggesting a response to evolving housing needs in the neighborhood.
Penn Plaza demonstrates a significant commitment to affordable housing through the LIHTC program, with LIHTC funded units covering most of the estimated housing inventory. The neighborhood has seen a consistent development of affordable housing projects over a 25-year period, with a focus on smaller unit types. The area has experienced population growth and increased racial diversity over the past decade, which may have influenced the continued development of affordable housing. The substantial presence of LIHTC funded housing in Penn Plaza plays a crucial role in maintaining housing affordability in this Manhattan neighborhood.
