Loading Content...
Chester, Illinois: LIHTC's Role in Affordable Housing Amid Population Decline
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
Chester, Illinois, exhibits a distinct affordable housing landscape supported by the Low-Income Housing Tax Credit (LIHTC) program. The city's LIHTC-funded affordable housing inventory comprises 64 total units, with 28 designated as low-income units. Based on the estimated housing inventory of 2,930 units, LIHTC-funded affordable housing represents approximately 2.18% of the city's housing stock.
Chester has received $219,868 in project tax credits through the LIHTC program. With two approximate projects, this equates to an average federal funding of $109,934 per project and $3,435 per unit. The city holds 0.03% of the total state funding for LIHTC projects.
The initial LIHTC project in Chester, Chesterton Manor, was completed in 1993, while the most recent project, Manor At Craig Farms, was finished in 2007. This indicates that affordable housing has been present in the city for at least 14 years. The 1990s and 2000s each saw one affordable housing project completed.
The LIHTC-funded housing inventory in Chester consists of 24 efficiencies, 18 one-bedroom units, and 4 two-bedroom units. This distribution indicates a focus on smaller households and individuals.
Over the past decade, Chester has experienced a population decline, from 9,092 in 2017 to 7,648 in 2022. The median income has fluctuated, reaching a peak of $70,533 in 2016 before settling at $61,087 in 2022. The racial composition has remained relatively stable, with a slight increase in diversity. The white population decreased from 67% in 2017 to 71% in 2022, while the Black population remained consistent at around 22-24%.
The absence of new LIHTC projects in the last decade may be attributed to the declining population and relatively stable median income, potentially indicating a reduced demand for additional affordable housing units.
Chester's LIHTC-funded affordable housing inventory, while modest in size, has been a part of the community for over a decade. The city has received a small portion of the state's LIHTC funding, resulting in 64 total units with 28 designated as low-income. The housing stock primarily consists of smaller units, suggesting a focus on individual and small household needs. Despite the lack of recent LIHTC projects, the existing inventory continues to address affordable housing needs in the face of a declining population and fluctuating median income.
