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Berkeley's LIHTC Program: Addressing Affordable Housing Needs in a University City
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Berkeley, California, a university city, has a significant Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. The city's LIHTC program has contributed to the creation of 1,091 total units, with 964 designated as low-income units. Based on an estimated housing inventory of 45,572 units, LIHTC-funded affordable housing comprises approximately 2.4% of the city's housing stock.
Berkeley has received $13,311,981 in project tax credits through the LIHTC program. With approximately 27 projects, this amounts to an average of $493,036 in federal funding per project. The average federal funding per unit is $12,201. Berkeley holds 0.43% of California's total LIHTC funding, indicating a modest share of the state's affordable housing resources.
The city's LIHTC-funded affordable housing development spans over three decades, with the earliest project completed in 1989 and the most recent in 2019. The 2000s saw the most affordable housing activity, with several projects completed during this decade. The LIHTC-funded housing stock in Berkeley offers a range of unit types, including efficiencies, one-bedroom, two-bedroom, three-bedroom, and four-bedroom units, catering to various household sizes and needs within the low-income population.
Several LIHTC projects in Berkeley target specific populations with unique housing needs. For instance, some projects focus on persons with HIV/AIDS, transition-age youth, and individuals with mental illness. These specialized projects demonstrate Berkeley's efforts to address diverse affordable housing needs within the community.
Over the past decade, Berkeley's population has remained relatively stable, with a slight increase from 112,824 in 2010 to 118,942 in 2022. During this period, the median income has grown significantly, rising from $61,960 in 2013 to $94,846 in 2022. This increase in median income may have influenced the need for affordable housing in the city.
The racial composition of Berkeley has shown some changes over the past decade. The white population has decreased from 55% in 2013 to 50% in 2022, while the Asian population has remained relatively stable around 20%. The Hispanic population has slightly increased from 10% to 13%, and the Black population has decreased from 9% to 7%. These demographic shifts may impact the demand for affordable housing among different racial groups.
Berkeley's LIHTC-funded affordable housing inventory represents a small but significant portion of the city's housing stock. The program has provided a diverse range of housing options, including specialized units for vulnerable populations. While the city has seen a steady increase in median income over the past decade, demographic shifts and the ongoing need for affordable housing continue to shape Berkeley's housing landscape. The LIHTC program remains an important tool in addressing the city's affordable housing needs, though it is likely complemented by other housing initiatives to meet the full spectrum of housing requirements in this university town.
