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Affordable Housing in Zip Code 55318: A Three-Decade Commitment in Chaska, Minnesota
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Zip code 55318, located in Chaska, Minnesota, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The area contains 387 units in LIHTC-funded projects, with 318 of these designated as low-income units. Based on the 2022 population of 32,533 and an estimated 12,465 housing units, the LIHTC-funded affordable housing represents approximately 3.1% of the total housing inventory in this zip code.
The LIHTC projects in zip code 55318 have received $1,444,997 in tax credits, averaging about $3,734 in federal funding per unit. This zip code holds 0.5% of the total state LIHTC funding, indicating a modest but notable share of Minnesota's affordable housing resources.
Affordable housing has been a long-standing feature in this area, with projects spanning from 1989 to 2017. The first LIHTC project, Barbary Knoll, was completed in 1989, while the most recent, Creeks Run Townhomes - Phase II, was finished in 2017. This 28-year period demonstrates a consistent commitment to affordable housing development.
The 1990s and 2000s saw the most affordable housing activity, with projects like East Creek Carriage Homes (1998), Brickstone Townhomes (1999), and Crosstown Commons (2004) being completed. The inventory includes a diverse mix of unit types, with 5 efficiencies, 30 one-bedroom, 171 two-bedroom, 104 three-bedroom, and 14 four-bedroom units, catering to various household sizes and needs.
Over the past decade, zip code 55318 has experienced steady population growth, increasing from 27,756 in 2013 to 32,533 in 2022. This growth of about 17% suggests a rising demand for housing overall. The median income has fluctuated but generally trended upward, reaching $106,445 in 2022, which might indicate a growing need for affordable options amidst rising costs.
Racial demographics in zip code 55318 have remained relatively stable, with a slight decrease in the white population from 86% in 2013 to 83% in 2022, and small increases in Asian (2% to 4%) and Hispanic (6% to 8%) populations. This gradual diversification could potentially influence future affordable housing needs and designs.
Zip code 55318 has an established foundation of LIHTC-funded affordable housing, representing a small but important portion of its housing inventory. The area has seen consistent development of affordable units over nearly three decades, with a diverse range of unit types to accommodate different household sizes. While the current affordable housing stock covers a modest percentage of the total estimated housing units, the steady population growth and income changes suggest an ongoing need for affordable options in this evolving community.
