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Fredericksburg's LIHTC-Funded Affordable Housing: A Decade of Growth and Demographic Shifts
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Fredericksburg, Texas, a city known for its German heritage, has a significant Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. The city has 325 total units in LIHTC-funded projects, with 307 designated as low-income units. Based on the estimated housing inventory of 7,188 units, LIHTC-funded affordable housing covers approximately 4.5% of the city's housing stock.
Fredericksburg has received $730,295 in project tax credits through the LIHTC program. With approximately 5 projects, this translates to an average of $146,059 in federal funding per project. When divided by the total number of units, it amounts to about $2,247 in federal funding per unit. The city holds 0.63% of Texas' total LIHTC funding, indicating a relatively small but notable share of the state's affordable housing resources.
The first LIHTC project in Fredericksburg, Fredricksburg Seniors, was completed in 1991, while the most recent projects, Friendship Place and Towne Park In Fredericksburg II, were finished in 2006. This 15-year span demonstrates a sustained commitment to affordable housing in the city. The 2000s saw the most affordable housing development, with three projects completed during this decade: Towne Park In Fredericksburg I (2003), Friendship Place (2006), and Towne Park In Fredericksburg II (2006).
The LIHTC-funded projects in Fredericksburg include 81 one-bedroom units, 70 two-bedroom units, and 50 three-bedroom units, providing a diverse range of housing options for different family sizes.
Over the past decade, Fredericksburg's population has grown steadily, increasing from 17,516 in 2017 to 18,760 in 2022. The median income has also risen, from $58,878 in 2017 to $65,429 in 2022, indicating overall economic growth. The racial composition of Fredericksburg has remained relatively stable, with a slight increase in the Hispanic population from 24% in 2017 to 27% in 2022, while the white population decreased slightly from 73% to 71% during the same period.
Despite these demographic changes, no new LIHTC projects have been completed in the last decade. This could suggest that the existing affordable housing stock has been sufficient to meet the city's needs, or that other affordable housing programs may be addressing any additional demand.
Fredericksburg's LIHTC-funded affordable housing inventory represents a small but significant portion of the city's housing stock. The city has maintained a consistent approach to affordable housing development over a 15-year period, with projects catering to various family sizes. While demographic trends show population growth and increasing median income, the lack of recent LIHTC projects may indicate a stable affordable housing situation or a shift in housing priorities. The city's share of state LIHTC funding and the distribution of units across different bedroom sizes demonstrate a targeted approach to addressing affordable housing needs in Fredericksburg.
