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Rochester's LIHTC Program: Addressing Affordable Housing Needs in a Growing Medical Hub
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Rochester, Minnesota, home to the Mayo Clinic, has a significant Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. The city's LIHTC program has developed 1,869 total units, with 1,484 designated as low-income units. This represents approximately 4% of Rochester's estimated 46,703 housing units.
The LIHTC program in Rochester has received $11,107,897 in project tax credits. With approximately 28 projects, this averages $396,710 in federal funding per project, or about $5,944 per unit. Rochester's allocation represents 3.81% of Minnesota's total LIHTC funding.
The city's LIHTC-funded affordable housing development spans from 1995 to 2019, demonstrating a long-term commitment to affordable housing. The 2010s saw the most significant growth, with 15 developments completed during this decade. Notable projects include Central Towers (2012) for individuals with substance abuse issues and mental illness, and Gage East Apartments (2017).
Rochester's LIHTC-funded housing stock comprises 72 efficiencies, 510 one-bedroom units, 624 two-bedroom units, 291 three-bedroom units, and 4 four-bedroom units, catering to various household sizes and needs within the low-income population.
Rochester's population increased from 106,963 in 2010 to 121,894 in 2022, a 14% growth. The median income rose from $62,152 in 2013 to $81,198 in 2022. Despite this economic growth, the continued development of LIHTC projects indicates an ongoing need for affordable housing options.
The city's racial composition has remained relatively stable, with a slight decrease in the white population from 75% in 2016 to 72% in 2022, and small increases in Black and multiracial populations. This demographic shift may suggest a growing need for diverse and inclusive affordable housing options.
Rochester's LIHTC program has significantly contributed to the city's affordable housing inventory, with nearly 1,900 units developed over 24 years. The program's consistent implementation, particularly in the 2010s, demonstrates an ongoing commitment to addressing affordable housing needs. While LIHTC-funded units represent a small percentage of the overall housing stock, they play a crucial role in providing housing options for low-income residents in this growing city. The diverse unit types and targeted projects reflect an effort to address varied housing requirements within the community.
