Mixed Income Housing
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Bostonm...@aol.com
Oct 7, 2008, 12:08:20 PM10/7/08
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Hi Everybody:
Here is an article on mixed income housing written by a rather large
developer in Boston. See what you think!
Tim McHale
Friday, December 16, 2005
Making Mixed - Income Housing Work
Excerpts from an article written by Joseph E. Corcoran,
co-founder of the
Corcoran Jennison Company.
Today, mixed income housing is accepted nationally and is even required in many progressive cities and communities throughout the United States. In Boston, Mayor Thomas M. Menino has instituted a policy that requires all proposals for new luxury housing projects to include at least 10% affordable units. In Stamford Conneticut, Mayor Daniel Malloys' new downtown housing initiative requires developers to include 20% affordable units. Mixed income is here to stay and all residential developers of multifamily and single family projects alike will have accomodate the concept in their future planning. It is absolutely the correct way to house the nations low income families. For the past half century, public housing projects have demonstrated very clearly that warehousing low income families is a formula for social disaster. It is also inconsistent with the U.S. concept of assimilating diverse ethnic groups and the economically deprived into the mainstream of American life.
Corcoran Jennison opened its first mixed income community, Queen Anne's Gate in Weymouth Mass. in 1973. The community has had an average occupancy rate of 96% since then. Today, Queen Anne's Gate contains 560 units, 25% of which are occupied by low income households, 25 percent by moderate income households and 50% by households paying the market rate. This is an ideal mix. Experience has taught us that market rate units must be predominant in a mixed income project. In a project with at least half of its units market rate, the developer/owner is forced to be sensitive to the market and must plan, design and maintain the property to market standards. The objective is to create an attractive community that people of all income levels will be proud to call home. If subsidized units predominate, the community risks losing the market rate component.
Low end and moderate income units should always have the same design and specifications as market rate units. The key is to provide equivalent housing for all income levels. This eliminates resentment by putting all residents on an equal footing. Mixing low income and market rate units throughout the site is also important to avoid any section being labeled as low income. Prospective renters or homeowners at any income level, should not observe a segmenting of low income families.
Generally speaking, potential residents of market rate units are not going to move into a mixed income developement because they see it as an interesting social experiment. They will move in because it offers a better deal for the money. To make it a better deal, the developer generally needs the advantage of some sort of subsidy, such as tax exempt financing, cost of land writedown, tax credits, tax breaks or grants. If the location is superior, the market rate units can subsidize the low income units without additional subsidies.
The presence of low income families living on site may be an obstacle for some market rate prospects. Our experience indicates that as much as 10% of the market pool may be turned off by the concept. Interestingly, Harbor Point in Boston actually attracts people who want to live there because they know it is a mixed income and racially mixed
community.
Racially mixing all income groups also is important and we make a concerted outreach effort to do so. Harbor Point is home to 3000 people living in 1,283 units. 35% of the market rate units are inhabited by members of minority groups, 20% of whom are african american. 25% of the low income families are white. Our marketing and social service staff works hard to acheive this mix by reaching out to local employers, community centers, publications, government agencies and even elected officials. For example, in urban public housing turnaround projects, in which african american and hispanic families typically dominate the low income component, our on site social service workers go to low income non profit agencies and offer our units to white families on housing waiting lists. In suburban mixed income communities, we do the reverse. Our marketing staff also visits corporate human services departments and actively markets market rate units to minority workers, stressing our objective of creating racially mixed communities.
Property management, like any other profession, requires special skills. Those skills are aquired through long years of training and gaining experience in procedures such as formulating and implementing budgets, examining and procuring maintenance and vendor contracts and properly assessing prosective tenants and their ability to pay the rent and respect their nieighbors and their property.
A mixed income property management company should maintain the same standards for all income levels. Our base leasing contract is exactly the same for all income groups and violations are enforced uniformly. For example, if residents do not pay the rent, they are evicted. Likewise, intefering with a neighbors' legitimate rights or possessing illegal drugs or weapons are also grounds for eviction.
In Corcoran Jennison's seven conversions of public housing projects into mixed income communities, the social service component has been essential to the succes of the turnaround. This component provides teen and after school activities, tutorial and substance abuse counseling and other services that are available to all income levels. The existing low income families have an understandable fear of change and their ability to adapt and the social service component gives comfort and help during this trasition period.
Corcoran Jennison Company.
Today, mixed income housing is accepted nationally and is even required in many progressive cities and communities throughout the United States. In Boston, Mayor Thomas M. Menino has instituted a policy that requires all proposals for new luxury housing projects to include at least 10% affordable units. In Stamford Conneticut, Mayor Daniel Malloys' new downtown housing initiative requires developers to include 20% affordable units. Mixed income is here to stay and all residential developers of multifamily and single family projects alike will have accomodate the concept in their future planning. It is absolutely the correct way to house the nations low income families. For the past half century, public housing projects have demonstrated very clearly that warehousing low income families is a formula for social disaster. It is also inconsistent with the U.S. concept of assimilating diverse ethnic groups and the economically deprived into the mainstream of American life.
Corcoran Jennison opened its first mixed income community, Queen Anne's Gate in Weymouth Mass. in 1973. The community has had an average occupancy rate of 96% since then. Today, Queen Anne's Gate contains 560 units, 25% of which are occupied by low income households, 25 percent by moderate income households and 50% by households paying the market rate. This is an ideal mix. Experience has taught us that market rate units must be predominant in a mixed income project. In a project with at least half of its units market rate, the developer/owner is forced to be sensitive to the market and must plan, design and maintain the property to market standards. The objective is to create an attractive community that people of all income levels will be proud to call home. If subsidized units predominate, the community risks losing the market rate component.
Low end and moderate income units should always have the same design and specifications as market rate units. The key is to provide equivalent housing for all income levels. This eliminates resentment by putting all residents on an equal footing. Mixing low income and market rate units throughout the site is also important to avoid any section being labeled as low income. Prospective renters or homeowners at any income level, should not observe a segmenting of low income families.
Generally speaking, potential residents of market rate units are not going to move into a mixed income developement because they see it as an interesting social experiment. They will move in because it offers a better deal for the money. To make it a better deal, the developer generally needs the advantage of some sort of subsidy, such as tax exempt financing, cost of land writedown, tax credits, tax breaks or grants. If the location is superior, the market rate units can subsidize the low income units without additional subsidies.
The presence of low income families living on site may be an obstacle for some market rate prospects. Our experience indicates that as much as 10% of the market pool may be turned off by the concept. Interestingly, Harbor Point in Boston actually attracts people who want to live there because they know it is a mixed income and racially mixed
community.
Racially mixing all income groups also is important and we make a concerted outreach effort to do so. Harbor Point is home to 3000 people living in 1,283 units. 35% of the market rate units are inhabited by members of minority groups, 20% of whom are african american. 25% of the low income families are white. Our marketing and social service staff works hard to acheive this mix by reaching out to local employers, community centers, publications, government agencies and even elected officials. For example, in urban public housing turnaround projects, in which african american and hispanic families typically dominate the low income component, our on site social service workers go to low income non profit agencies and offer our units to white families on housing waiting lists. In suburban mixed income communities, we do the reverse. Our marketing staff also visits corporate human services departments and actively markets market rate units to minority workers, stressing our objective of creating racially mixed communities.
Property management, like any other profession, requires special skills. Those skills are aquired through long years of training and gaining experience in procedures such as formulating and implementing budgets, examining and procuring maintenance and vendor contracts and properly assessing prosective tenants and their ability to pay the rent and respect their nieighbors and their property.
A mixed income property management company should maintain the same standards for all income levels. Our base leasing contract is exactly the same for all income groups and violations are enforced uniformly. For example, if residents do not pay the rent, they are evicted. Likewise, intefering with a neighbors' legitimate rights or possessing illegal drugs or weapons are also grounds for eviction.
In Corcoran Jennison's seven conversions of public housing projects into mixed income communities, the social service component has been essential to the succes of the turnaround. This component provides teen and after school activities, tutorial and substance abuse counseling and other services that are available to all income levels. The existing low income families have an understandable fear of change and their ability to adapt and the social service component gives comfort and help during this trasition period.
Social services' mission is to give each family the resources needed to make succesful transition to life in a mixed income community, including housekeeping, budgeting, parenting, substance abuse, education and job training.
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