Integrated Housing Example Feedback

In a recent blog post, I asserted regarding a proposed mixed-income development in Milwaukee using bonds:

One reason I'm very supportive of this type of development is that the affordable units financed with the bonds are more integrated than many of the typical tax-credit developments you see done through WHEDA. Even though the Low-Income Housing Tax Credit (LIHTC) program doesn't require that ALL of the units use tax credits, there often is a financial benefit to developers in doing so.

A consultant disagreed with me, responding:

Although it is financially beneficial to have all units be LIHTC, for a number of years, WHEDA and other housing authorities award extra points to those projects that have mixed income housing. Since the application process is highly competitive, most developers that I’m familiar with now include a required number of units that are market rate in the unit mix, (15-20%, as I recall). Usually the market rate units are larger with possibly an extra amenity or two.


In the one bond project I worked on, bonds require a very limited number of units to be at 30% to 40% level. In that project, all these units were clustered together on one floor. I know with tax credits, the units need to be spread throughout the building and have the same basic workmanship in all.

I stand corrected, noting that many of the developments I'm more familiar with in Milwaukee used supportive housing financing, so I had a false impression of the prevalence of the lack of market-rate units overall.

Folks, if you disagree with me, feel free to say so in the comments, or to e-mail me directly.