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Affordable Housing in South Austin: LIHTC's Long-term Impact on Neighborhood Dynamics
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
South Austin, a neighborhood in Chicago, Illinois, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The neighborhood contains 1,819 total units in LIHTC funded projects, with 1,511 of these specifically designated as low-income units. Based on the 2022 population of 59,991 and using the national average household size, the estimated housing inventory for South Austin is approximately 22,985 units. The LIHTC funded affordable housing covers about 7.9% of the neighborhood's estimated housing inventory, indicating a substantial contribution to affordable housing needs.
The LIHTC program has invested significantly in South Austin, with project tax credits totaling $3,757,294. This translates to an average federal funding of approximately $2,066 per unit in LIHTC funded projects. The neighborhood has seen a long-standing commitment to affordable housing, with the earliest LIHTC projects, Austin Renaissance and 600 N Central Assoc, completed in 1987. The most recent project on record, Mount Vernon Manor, was completed in 2006, showcasing nearly two decades of LIHTC investment in the area.
The 1980s and early 1990s were particularly active for affordable housing development in South Austin. Notable projects from this period include Washington Courts Apts, Boulevard Commons II, and Circle Garden Apts, all completed in 1988-1989. The neighborhood's LIHTC inventory is diverse, featuring 175 efficiencies, 399 one-bedroom units, 375 two-bedroom units, 127 three-bedroom units, and 23 four-bedroom units, catering to various household sizes and needs.
Over the past decade, South Austin has experienced some demographic shifts. The population has remained relatively stable, with a slight increase from 55,580 in 2020 to 59,991 in 2022. Median income has shown an upward trend, rising from $33,800 in 2018 to $37,011 in 2022, indicating a gradual economic improvement in the neighborhood.
Racial demographics have also evolved. The Black population has decreased from 86% in 2019 to 79% in 2022, while the Hispanic population has grown from 8% to 14% during the same period. The White population has remained stable at around 5%. These changes suggest a gradual diversification of the neighborhood.
Despite the absence of new LIHTC projects recorded in the last decade, the demographic trends indicate an ongoing need for affordable housing. The modest increase in median income, coupled with population growth and demographic shifts, suggests that the existing LIHTC inventory continues to play a crucial role in meeting the neighborhood's affordable housing needs.
South Austin's LIHTC funded affordable housing inventory represents a significant portion of the neighborhood's estimated housing stock. The long history of LIHTC investment, spanning from 1987 to 2006, has created a diverse range of affordable units catering to various household sizes. While no new LIHTC projects have been recorded in recent years, the existing inventory continues to serve the community amidst demographic changes, including population growth, increasing median income, and evolving racial composition. The LIHTC program has been and remains an important contributor to affordable housing in South Austin, helping to address the housing needs of its lower-income residents.
