Background

For years, the federal government’s policy was to create large housing developments for the poor. The housing developments concentrated low-income families from services, transportation and the marketplace in many cities across the country. These developments soon became places of crime and violence. Many were in such poor condition that these developments were ultimately torn down or abandoned.

In recent years, the federal policy has shifted from concentrating the poor in large housing development to combining low-income and higher income households in the same development. The combination of low-income and higher income household in the same development is known as mixed-income development. This style of development is unique as the developer attempts to attract higher income individual to a community which is also home to the poor.

Below are some interesting case studies for mixed-income development across the country.

Montgomery County, Maryland Moderately Price Dwelling Unit Program (MPDU): Probably the most famous in mixed income development, Montgomery County’s MPDU program has been successful method to mix low, moderate and high income individuals within the same development. Developers set aside a small portion of housing in a development for low-income individuals, the local housing authority and certified nonprofits. I was able to see this program firsthand. From 2000-2004, I was an Associate Director for Housing Unlimited, Inc. an affordable housing corporation for people with psychiatric disabilities in this county. Housing Unlimited is one of few certified nonprofits in the county which has access to MPDU units. A bried overview of the MPDU can be found here.

You can find out more information about the program in the following links:

PolicyLink’s overview of the MPDU program: http://www.policylink.org/pdfs/EDTK/IZ/InZon-Montgomery.pdf

The Brooking Institution Center on Urban and Metropolitan Policy report:
http://www.knowledgeplex.org/showdoc.html?id=2342

Criticisms of the MPDU program can be found here:
http://www.neighborspac.org/MPDU%20Buy-outs.htm