Submitted by buried_lede t3_106z704 in newhaven
AbuJimTommy t1_j3ml6rs wrote
There’s 2 main reasons to only apportion a certain % of units as “affordable” while Maintaining a majority as market rate.
First, ideologically HUD and many advocates have pushed the idea of deconcentrating poverty. The old way was to build large tracts of subsidized housing in undesirable sections of urban areas. You can see this type of development all over (parts of) town. Most of that can’t be undone, and it can be very difficult to put together a funding stack for something that isn’t 95-100% subsidized, affordable. The newer idea is that the “poor” will have better outcomes if they are mixed in all together with other economically diverse families rather than segregated. This is some of the idea behind rental vouchers as well, but as we know voucher holders struggle to break out of economically depressed sections of town too. Having a small to medium % of units in a new construction can be a really good way to further deconcentration, depending on the particulars.
Second is money. Even with millions of government dollars, it is really, really expensive to build this type of housing, a cost that is compounded often by the strings attached to that government money. Government money that usually only makes up a minority share of actual costs. Eventually a building has to generate enough income to both pay staff and service the inevitable debt on the property as well. Additionally, “non-profit” doesn’t actually mean the organization doesn’t make a profit, it just means there’s a socially beneficial bent and the profits aren’t distributed to any kind of shareholder, they stay with the organization to further the mission.
buried_lede OP t1_j3n0jwk wrote
Nonprofit actually is nonprofit, but what you mean is it needs to maintain adequate operating funds to sustain its projects and itself. If I’m not mistaken ConnCAT has a for profit arm, which some nonprofits have. Not certain of that though.
Another way to mitigate segregating the poor is to dedicate half the units to lower income artists and/ or entrepreneurs, rather than market rate. It has the same outcome - it expands the cultural gravity and vibrancy of a neighborhood as well as, no, better than monied renters. This is a well known affect of the arts in neighborhoods.
Just an idea I am putting out there for consideration.
buried_lede OP t1_j3np611 wrote
Down voted because? Lol
Viewing a single comment thread. View all comments