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Affordable Housing in South Chicago: Analyzing LIHTC Impact and 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 Chicago, a neighborhood in Chicago, Illinois, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The area has 504 total units in LIHTC-funded projects, with 342 of these designated as low-income units. Based on the 2022 population of 29,612 and the national average household size, the estimated housing inventory for the neighborhood is approximately 11,346 units. The LIHTC-funded affordable housing covers about 4.4% of the estimated housing inventory in South Chicago.
The LIHTC program has invested significantly in South Chicago, with project tax credits totaling $6,963,119. This translates to an average federal funding of approximately $13,816 per unit in LIHTC-funded projects. The neighborhood has seen a long-term commitment to affordable housing, with the earliest project, Germano Millgate, completed in 1988, and the most recent, Victory Center of South Chicago, in 2011. This span of over two decades demonstrates a sustained effort to provide affordable housing in the area.
The 1990s saw the most activity in affordable housing development, with projects like Southeast Little Village (1993), Commercial Ave Revitaliza (1994), and Germano-Millgate Apts (1995) being completed. The housing stock in LIHTC-funded projects is diverse, including 150 efficiencies, 90 one-bedroom units, 162 two-bedroom units, 18 three-bedroom units, and 3 four-bedroom units. This variety caters to different household sizes and needs within the community.
Over the past decade, South Chicago has experienced some demographic shifts. The population has slightly increased from 26,240 in 2016 to 29,612 in 2022. Concurrently, the median income has risen from $33,828 in 2016 to $45,051 in 2022, indicating some economic improvement in the area.
The racial composition of South Chicago has remained relatively stable, with a predominantly Black population. In 2022, the neighborhood was approximately 77% Black, 17% Hispanic, and 3% White. The consistency in racial demographics suggests that the LIHTC-funded housing has been supporting a stable community composition.
No new LIHTC projects have been completed in South Chicago since 2011. This could be due to various factors, including changes in funding priorities or a shift in housing needs. The rising median income might indicate a reduced need for additional affordable housing units in recent years.
South Chicago's LIHTC-funded affordable housing inventory plays a significant role in the neighborhood's housing landscape, covering about 4.4% of the estimated housing stock. The area has benefited from substantial federal investment, with an average of $13,816 per unit in tax credits. The diversity of unit types in LIHTC projects caters to various household sizes and needs. While there has not been new LIHTC development since 2011, the existing projects continue to serve the community. The neighborhood has seen modest population growth and income increases over the past decade, suggesting evolving housing needs that may influence future affordable housing strategies in South Chicago.
