Blueprint for June
Mixing It Up
By Jessica Hoefer
2 min read
Mixed-income projects transform neighborhoods, decrease poverty and reduce exposure to environmental hazards. They provide economic and racial diversity, inclusivity and security. And yet there are still misconceptions about the effectiveness of these developments. For example, the belief that high-income residents won’t live near low-income residents when, in fact, healthy neighborhoods have long included a blend of incomes.
There is the belief that affordable housing is unattractive or a blight on neighborhoods. But the reality is, mixed-income developments have been found to improve standard design. There is also the erroneous notion that the current marketplace can meet the demand for moderate-income housing, when we know that the marketplace needs help supplying enough housing, especially workforce housing.
Enough with the factual mix-ups. In this issue of Tax Credit Advisor, we look at ways to advance mixed-income and mixed-use developments, as well as the benefits of income averaging and how it is all promoting economic growth.
Mixed-income housing is well worth the effort, but the general opinion is not wrong in acknowledging its complexities. Legally Speaking identifies strategies for balancing and ironing out the Low Income Housing Tax Credit and market-rate units in mixed-income projects.
Mixing market-rate units into a community using income averaging has a convoluted compliance process. This can reinforce the belief that regulations make it too difficult to develop mixed-income housing. But state and local regulations and incentives allow developers to serve residents at higher and lower incomes where there is a great need. (Income Averaging)
Another thing that people tend to get mixed up is that financing for mixed-income housing is unavailable or hard to come by. But there are several novel sources of funding that support these developments, such as the Workforce Housing Fund, which we learn more about in Strong, Resilient and Economically Diverse.
In Boston, Cruz Companies is developing mixed-income, mixed-use properties that honor Black Boston citizens while advancing minority neighborhoods. The projects improve the quality of life and offer thousands of residents stable, well-managed apartment properties, which has opened the door for long-term wealth generation and encouraged economic growth. (Case Study: Boston Company Invests in Minority Neighborhoods)
Mixed-income developments are indispensable. So, “the next time someone asks you why mixed-income housing matters, to your list of reasons you can add, mixed-income housing promotes democracy in America.” (The Guru Is In)
Don’t mix up the facts, mix up the neighborhoods.
Regards,
Jessica Hoefer
Editor-in-Chief
