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Mixed-Income Housing and the HOME Program

HUD-2003-15-CPD

Most housing professionals agree that concentrating assisted-housing for low- and very low-income Americans in dense, urban areas is not an effective use of scarce affordable housing resources. Over the past decade, professionals in the affordable housing industry have turned increasingly to mixed-income housing as an alternative to traditional assisted-housing initiatives. Mixed-income housing is an attractive option because, in addition to creating housing units for occupancy by low-income households, it also contributes to the diversity and stability of American communities.

There have been numerous successful mixed-income developments nationwide. State and local governments have developed incentive programs and initiatives to promote mixed-income housing. In the past decade, the U.S. Department of Housing and Urban Development (HUD) has provided support for public housing authorities to de-concentrate traditional public housing in favor of the development of mixed-income housing. In addition, HUD funding from the HOME Investment Partnerships Program can also be a valuable resource for states and local jurisdictions to finance mixed-income housing initiatives, or to develop, design and implement new mixed-income housing programs that address local housing needs. HOME funds are specifically designed to be flexible in order to meet local housing needs.

This publication, Mixed-Income Housing and the HOME Program provides guidance to HOME participating jurisdictions on how they can use HOME funds to support mixed-income housing development. It reviews the benefits of mixed-income housing, provides detailed information on the considerations that will ?make or break? a mixed-income housing deal, and it highlights regulatory provisions of the HOME Program that must be addressed, many of which help facilitate the mixed-income housing programming. Mixed-Income Housing and the HOME Program draws heavily on real and hypothetical case studies to demonstrate the applicability of the publication?s lessons.


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