Panel Paper: The Neighborhood Effects of Mixed-Income Housing Development

Friday, November 3, 2017
Wright (Hyatt Regency Chicago)

*Names in bold indicate Presenter

Raphael Bostic, Federal Reserve Bank of Atlanta

Because of the well-documented negative effects of concentrated poverty on both residents and neighborhood economic conditions, the idea of mixed-income housing has gained widespread traction among practitioners and policy-makers. Using Los Angeels as a case study, we assess the extent to which mixed-income developments have catalyzed revitalization in their surrounding neighborhoods. Our study uses LIHTC and HOPE VI developments as a frame for quantifying efffects on surrounding property values and crime rates. Unlike previous analyses, we focus extensively on the sustainability of those spillover effects over time. We also examine neighborhoods with multiple subsidized properties to understand the effects of concentrated LIHTC and HOPE VI investment on local economic conditions. We augment our quantitative analysis with in-depth qualitative case studies of several Los Angeles communities, each of which has multiple HOPE VI and/or LIHTC properties. Through conversations with developers, lenders, and key local officials in these areas, we identify the particular property- and neighborhood-specific factors that shape the extent of the properties’ spillover impacts.