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Salem's LIHTC Program: A Decade of Affordable Housing 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
Salem, New Jersey, founded in 1675, had a population of 5,285 as of 2022. The Low-Income Housing Tax Credit (LIHTC) program has funded 318 low-income units in the city. This accounts for approximately 15.7% of the city's estimated 2,025 housing units, aligning with the 15-20% target for affordable housing in a balanced city.
Salem has received $7,297,870 in LIHTC project tax credits, funding approximately 9 projects. The average federal funding per project is $810,874, with $22,949 per unit. The city holds 0.97% of the total state LIHTC funding, indicating significant investment relative to its size.
LIHTC-funded projects in Salem span from 2003 to 2010. The Salem Historic Homes initiative began in 2003, while the most recent project, Whispering Waters I, was completed in 2010. The early 2000s saw the most activity, with multiple projects completed in 2003, including Salem Historic Homes Phase I and II. Salem Senior Village was developed in 2006.
Salem's demographics have shifted over the past decade. The population declined from 5,289 in 2010 to 4,781 in 2019, before increasing to 5,285 in 2022. This recent growth may indicate a renewed need for affordable housing.
The median income in Salem was $34,522 in 2022, suggesting a continued need for affordable housing options. Racial demographics have changed, with the Black population increasing from 51% in 2013 to 59% in 2022, while the White population decreased from 38% to 29%. The Hispanic population has remained stable at 10-12%.
Salem's LIHTC-funded affordable housing inventory aligns with the target percentage for a balanced city, covering about 15.7% of the estimated housing stock. The city received significant LIHTC funding for projects from 2003 to 2010. While no new LIHTC projects have been reported in the last decade, recent population growth and low median incomes suggest an ongoing need for affordable housing. Demographic shifts may influence future affordable housing needs and development strategies.
