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Affordable Housing in Prescott, Arkansas: A Decade of Demographic Shifts and LIHTC Impact
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
Prescott, Arkansas, a city with a population of 4,298 as of 2022, possesses an affordable housing inventory funded by the Low-Income Housing Tax Credit (LIHTC) program. This inventory comprises 72 units, all of which are designated as low-income. Based on an estimated total housing inventory of 1,647 units, LIHTC-funded affordable housing represents approximately 4.4% of the city's housing stock.
The city has received $156,161 in project tax credits through the LIHTC program. With four projects, this equates to an average federal funding of $39,040 per project and $2,169 per unit. Prescott holds 0.1% of the total state LIHTC funding. The first LIHTC project in Prescott, Hawthorne Apartments, was completed in 1990, while the most recent project, Prescott Apts, was finished in 2004. This indicates that affordable housing has been present in the city for at least 14 years, with the 1990s seeing the most affordable housing projects completed.
The LIHTC-funded housing in Prescott consists of 24 one-bedroom units, 44 two-bedroom units, and 4 three-bedroom units. This distribution suggests a focus on housing for small families and individuals.
Prescott's population has shown a declining trend over the past decade, decreasing from 5,246 in 2014 to 4,298 in 2022. Despite this population decrease, the median income has increased significantly, rising from $28,946 in 2014 to $48,458 in 2022. This upward trend in median income may partially explain why no new LIHTC projects have been developed in the city since 2004.
The racial composition of Prescott has remained relatively stable over the past decade. The white population consistently represents the majority at approximately 60%, followed by the Black population at around 35-40%. The city has experienced a slight increase in racial diversity, with small percentages of Hispanic and multi-racial residents reported in recent years.
Prescott's LIHTC-funded affordable housing stock represents a small but significant portion of its overall housing inventory. The city has benefited from four LIHTC projects, primarily developed in the 1990s, providing 72 low-income units. While no new LIHTC projects have been built since 2004, the city has experienced a declining population and increasing median income, which may have influenced the perceived need for additional affordable housing. The existing LIHTC units, predominantly one and two-bedroom apartments, continue to serve the community's low-income residents.
