Loading Content...
Affordable Housing in Powderhorn Park: LIHTC's Impact on a Diverse Minneapolis Neighborhood
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
Loading Content...
Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Powderhorn Park, a neighborhood in Minneapolis, Minnesota, has a presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The neighborhood's LIHTC inventory consists of 93 total units, with 75 designated as low-income units. Based on the 2022 population of 9,325 and an estimated 3,573 housing units, the LIHTC-funded affordable housing covers approximately 2.6% of the neighborhood's estimated housing inventory.
The LIHTC program has invested $526,358 in tax credits for affordable housing projects in Powderhorn Park. This translates to an average federal funding of about $5,660 per unit across all LIHTC-funded projects in the neighborhood.
Affordable housing has been a part of Powderhorn Park since at least 1993, with the completion of Echo Flats (formerly known as Whittier). The most recent project, PRG I, was completed in 2017, indicating a span of at least 24 years of LIHTC-funded affordable housing development in the neighborhood.
The 2010s saw the most recent affordable housing development, with PRG I being completed in 2017. This project added 42 low-income units to the neighborhood's affordable housing stock.
The LIHTC-funded projects in Powderhorn Park offer a range of unit types. The inventory includes 1 one-bedroom unit, 25 two-bedroom units, 35 three-bedroom units, and 5 four-bedroom units. This distribution suggests a focus on accommodating families of various sizes.
PRG I targets Single Head of Household (HOH) and Individual Households of Color. This focus may help address specific housing needs within these demographic groups, potentially contributing to increased housing stability and community diversity.
Over the past decade, Powderhorn Park has experienced demographic shifts. The population increased from 9,384 in 2013 to 9,325 in 2022, peaking at 10,454 in 2019. Median income rose from $47,599 in 2013 to $56,240 in 2022, with fluctuations in between.
Racial distribution has remained relatively stable, with some changes. The White population increased from 44% in 2013 to 49% in 2022. The Hispanic population accounted for 31% of the population in 2022. The Black population decreased from 13% in 2013 to 11% in 2022.
The completion of PRG I in 2017 aligns with a period of population growth and increasing median income in the neighborhood. This suggests that the LIHTC project may have been responding to growing housing needs in an increasingly diverse community.
Powderhorn Park's LIHTC-funded affordable housing inventory provides important low-income housing options. The neighborhood has seen a consistent presence of affordable housing development over more than two decades, with the most recent project addressing specific demographic needs. The diverse unit types available cater to various household sizes, reflecting the neighborhood's demographic composition. While the LIHTC program has made a contribution to affordable housing in Powderhorn Park, the relatively low percentage of coverage suggests there may be additional opportunities for affordable housing in this evolving Minneapolis neighborhood.
