This month’s Fresh Fridays explored mixed-income housing development and how it can support Rhode Island’s housing goals. One Neighborhood Builders was joined by panelists Peter Asen, the director of housing production and preservation at the RI Department of Housing; Claudia Aiken, the director of new research partnerships at the Housing Solutions Lab at the NYU Furman Centery Peter Chapman, the president & CEO of One Neighborhood Builders.
The conversation began with an overview of what mixed-income developments are and their use as an affordable housing strategy. Aiken introduced the Hope VI Program, an initiative that set out to redevelop public housing projects across the United States by incorporating market-rate units. While successful in reducing the concentration of poverty and creating properties with residents earning a wide range of incomes, it received criticism for lacking clear standards, having low return rates to the redevelopment, and not replacing all affordable units, which resulted in the displacement of individuals. These shortcomings have helped inform subsequent mixed-income efforts throughout the country.
Aiken explained how many communities have utilized inclusionary zoning to encourage private developers to create more affordable housing through mixed-income developments. This is often accomplished by providing set-aside targets that ensure a percentage of units is reserved for specified income levels.
Chapman outlined three key factors that contribute to the success of mixed-income developments, including the deconcentration of poverty, economic development, and the potential for cross-subsidization. By balancing market-rate rents with affordable units, developers can create communities that are financially sustainable and support long-term growth.
Despite the promise of mixed-income housing, its use in Rhode Island remains underutilized. Asen noted one of the primary obstacles, limitations of the Low Income Housing Tax Credit (LIHTC) program, stating, “You cannot benefit from tax credit equity for portions of a project that are not affordable so the market rate rents need to be a lot higher to make up for those [lost tax credits].” While barriers exist, Asen highlighted the success of recent mixed-income developments in Westerly and the Fox Point neighborhood of Providence.
Chapman emphasized the country’s historical reliance on LIHTC as the primary tool for developing affordable housing, citing that about 90% of affordable housing in the United States has leveraged LIHTC.
Chapman pointed to the Mitchell-Lama Program—a solution that provides affordable rental properties and cooperative housing to middle-income families in New York—as a potential model to provide mixed-income housing at scale. This program allows residents to have an equity stake in their housing.
Looking to the future, Asen highlighted a few initiatives that promise to expand affordable housing and mixed-income housing in Rhode Island. Mixed-income developments could play a role in the implementation of the state’s Housing 2030 Plan and the $120-million housing bond for affordable housing development and preservation approved by voters last November.
The discussion then opened to Fresh Fridays attendees who had questions for the panel. Questions covered homeowners’ association fees amongst mixed-income housing, the role of accessibility in housing developments, and whether there is an ideal income range for mixed-income housing.
Anterior Fresh Fridays Sessions:
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- Fresh Fridays: A Conversation with Cortney Nicolato and Peter Chapman
- Viernes frescos: Sistemas de vivienda y personas sin hogar
- Viernes frescos; aplicación equitativa del código
- Viernes frescos: El coste de construir viviendas asequibles
- Viernes frescos: Transporte y comunidades equitativas
- Viernes frescos: Zonificación y desarrollo de viviendas asequibles
- Viernes frescos: Organización comunitaria en Providence
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