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Chapel Hill's LIHTC-Funded Affordable Housing: A Quarter-Century of Development
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Chapel Hill, North Carolina, home to the University of North Carolina, has a notable Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. The city's LIHTC inventory comprises 236 total units, with 164 designated as low-income units. This represents approximately 0.96% of Chapel Hill's estimated 24,679 housing units.
Chapel Hill has received $1,953,625 in project tax credits through the LIHTC program. With four projects, this equates to an average federal funding of $488,406 per project and $8,278 per unit. The city holds 0.45% of North Carolina's total LIHTC funding, indicating a significant investment in affordable housing for a town of its size.
The development of LIHTC funded affordable housing in Chapel Hill spans from 1994 to 2018. The first project, Dobbins Hill, was completed in 1994, and the most recent, Greenfield Commons, in 2018. This 24-year period demonstrates a long-term commitment to affordable housing. The 2010s were the most active period, with three out of four projects completed during this decade.
The LIHTC funded housing inventory in Chapel Hill offers a range of unit types. The breakdown includes 77 one-bedroom units, 106 two-bedroom units, 50 three-bedroom units, and 3 four-bedroom units. This distribution caters to various household sizes within the low-income community.
Chapel Hill's population increased from 60,203 in 2010 to 64,411 in 2022, a 7% growth. This population increase may have contributed to the need for additional affordable housing units, as reflected in the LIHTC projects completed during this period.
The median income in Chapel Hill rose from $72,816 in 2013 to $82,612 in 2022. Despite this increase, the continued development of LIHTC projects suggests an ongoing need for affordable housing options, possibly due to rising living costs or income inequality.
Racial demographics in Chapel Hill have shown shifts over the past decade. The white population decreased from 72% in 2013 to 65% in 2022, while Asian, Black, and Hispanic populations experienced modest increases. This gradual diversification may have influenced the continued focus on affordable housing to ensure equitable access for all community members.
Chapel Hill's LIHTC funded affordable housing inventory represents a consistent effort to provide low-income housing options. The city has utilized federal funding to create a diverse range of units over a 24-year period, with the most recent projects completed in the last decade. Despite rising median incomes, the continued development of LIHTC projects indicates an ongoing commitment to addressing affordable housing needs in this growing and diversifying college town.
