Challenges in the Creation of Mixed-Use Affordable Housing: Measuring and Explaining Its Limited Prevalence |
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Authors: | Yonah Freemark |
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Institution: | 1. Department of Urban Studies and Planning, Massachusetts Institute of Technology, Cambridge, USAfreemark@mit.edu |
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Abstract: | ABSTRACTMixed-use affordable housing buildings collocate residences and commercial uses. The Low-Income Housing Tax Credit (LIHTC) program provides one mechanism to fund such structures. But the literature offers little insight into the frequency of mixed-use LIHTC buildings, partly because of a lack of data identifying them, and it does not pinpoint conditions that facilitate their development. I explore these issues through a Chicago, Illinois, case study. First, I analyze imagery to create the first database of mixed-use LIHTC buildings. I show that only 5% of LIHTC structures incorporate commercial uses, and that these are concentrated in wealthier, whiter, and already retail-heavy neighborhoods. Second, I use stakeholder interviews to explain the low rate and selective location of mixed-use projects; I find that the stiffest barriers are conflicting governmental policies, difficulties securing financing in the context of a perception of weak retail demand and investor desires for reliable returns, and design constraints. |
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Keywords: | affordable housing mixed use retail LIHTC |
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