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Analyzing Chicago's LIHTC Affordable Housing Inventory: A Three-Decade Evolution
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Chicago's Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory plays a significant role in addressing the housing needs of its low-income residents. The city has a total of 43,369 units in LIHTC funded projects, with 34,818 of these designated as low-income units. Based on the estimated housing inventory of 1,021,097 units, LIHTC funded affordable housing covers approximately 4.25% of the city's total housing stock.
Chicago has received $279,377,912 in project tax credits through the LIHTC program. With approximately 518 projects, this translates to an average federal funding of $539,340 per project. Considering the total of 43,369 units in LIHTC funded projects, the average federal funding per unit is $6,442. Chicago holds 34.51% of the total state funding for LIHTC projects, highlighting its significant share of Illinois' affordable housing efforts.
The first LIHTC project in Chicago was completed in 1987, with several projects including Austin Renaissance and Hazel-Winthrop. The most recent recorded project was Johnson & Butler/Linden Apartments, completed in 2020. This demonstrates over three decades of affordable housing development in the city.
The years 2006 and 2007 saw the most affordable housing completions, with notable projects such as Hilliard Homes, Roosevelt Place, and Drexel Preservation. The 2000s were the decade with the highest number of LIHTC project completions. Chicago's LIHTC inventory includes a diverse range of unit types: 6,629 efficiencies, 13,286 one-bedroom units, 10,590 two-bedroom units, 5,604 three-bedroom units, and 833 four-bedroom units. This variety caters to different household sizes and needs.
Some LIHTC projects target specific populations. For instance, Hope Manor II Apartments, completed in 2014, focuses on veterans, addressing their unique housing needs. South Loop Apartments, completed in 2000, and Harold Washington Apartments, completed in 2012, both target individuals with special needs.
Over the past decade, Chicago's population has experienced a slight decline, from 2,722,407 in 2014 to 2,665,064 in 2022. Despite this, the median income has risen significantly from $48,734 in 2014 to $70,386 in 2022, indicating improved economic conditions for many residents. The racial distribution has remained relatively stable, with slight shifts. The white population decreased marginally from 33% to 32%, while the Black population decreased from 31% to 27%. The Hispanic population increased slightly from 29% to 30%, and the Asian population grew from 6% to 7%.
Chicago's LIHTC funded affordable housing inventory represents a significant effort to address the housing needs of low-income residents. With over 43,000 units and more than 500 projects, the program has made a substantial impact over the past three decades. The city's share of 34.51% of state LIHTC funding underscores its importance in Illinois' affordable housing landscape. While the current inventory covers about 4.25% of the estimated housing stock, there is room for growth to reach the ideal 15-20% target. The diverse range of unit types and targeted projects for specific populations demonstrate a thoughtful approach to meeting varied housing needs. As Chicago's demographics continue to evolve, ongoing LIHTC investments will play a crucial role in ensuring housing accessibility for all residents.
