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Challenges in the Creation of Mixed-Use Affordable Housing: Measuring and Explaining Its Limited Prevalence

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  • Yonah Freemark

Abstract

Mixed-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.

Suggested Citation

  • Yonah Freemark, 2018. "Challenges in the Creation of Mixed-Use Affordable Housing: Measuring and Explaining Its Limited Prevalence," Housing Policy Debate, Taylor & Francis Journals, vol. 28(6), pages 1004-1021, November.
    • Handle: RePEc:taf:houspd:v:28:y:2018:i:6:p:1004-1021
    DOI: 10.1080/10511482.2018.1506813
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