Housing is the cornerstone of a flourishing community. Access to stable housing means that neighbors can put down roots, get to know fellow neighbors, and lend their strengths to the community at large. As we work with neighbors to create equitable neighborhoods, mixed-income housing has proven to have a deep impact. Research increasingly suggests that mixed-income neighborhoods boost positive outcomes for neighbors and economic mobility. In short – mixed-income housing can help neighbors thrive for generations.
Let’s explore what a mixed-income housing strategy is, how it’s implemented, and how it benefits a neighborhood.
What is Mixed-Income Housing?
Mixed-income housing considers the needs of many types of individuals and families, offering a housing stock that can meet a variety of budgets and stages of life. From a construction standpoint, that usually means creating homes of different sizes and types. At FCS, that means we embark on multi-family housing developments like Haven, small dwellings of only 1 or 2 bedrooms like ADUs, and those that can accommodate a larger family. Each of these buildings should be of the highest-quality while ensuring that neighbors can access them at a variety of price points. In South Atlanta, that means we offer single-family rental homes at various prices, homes for purchase to low-income families using our own mortgage products, and workforce homes for those with a larger budget.
This multi-faceted approach allows neighbors of different income levels and life stages to choose a home that fits their needs. It also helps counteract the effects of harmful policies designed to keep neighborhoods economically and racially segregated. It allows legacy neighbors to stay in a community, even as these needs change. By integrating people with different income levels, life experiences, and perspectives, mixed-income housing creates a more vibrant, yet deeply rooted neighborhood. These deep roots in turn promote connection and long-term investment.
How is Mixed-Income Housing Different from Affordable Housing?
Affordable housing has a technical definition. It means that the person in the home is not paying more than 30% of their monthly income on housing expenses. When we think of affordable housing as an approach, it often means focusing on offering homes at a lower price point, ensuring that families can have a stable home while having enough funds to cover other living expenses. This work is vital! Ensuring that homes are accessible for neighbors with a low-income is a key part of making sure neighbors thrive. Yet sometimes, focusing only on affordable housing can uphold a dynamic in which some neighborhoods are economically segregated and cut off from resources.
Mixed-income housing means pursuing developments that neighbors of a wide variety of income levels can call home. It focuses on building a varied ecosystem by providing diverse options for a diverse pool of neighbors. In order to create a strong neighborhood, it’s important to offer homes that are accessible based on price and structure. This involves offering options for neighbors as their needs change. In addition to different types of structures, mixed-income housing approaches offer market-rate homes and units in the neighborhood as well as subsidized or lower-rent homes for people with lower incomes.
What Are The Benefits of Mixed-Income Housing?
Research has shown that mixed-income housing is a powerful vehicle for improving outcomes for all neighbors, especially those who have experienced the effects of unjust policy.
Mixed-income housing stock is efficient. When a neighborhood offers only the same size home, people who wish to live there must often pay for more space than they need. This is especially true with single people and seniors. Mixed-income housing allows everyone to find the space and price point that best fits their needs. This allows for a variety of ages and stages among neighbors. In turn, this diversity creates stronger bonds, long term resilience, and better quality of life.
When places thrive, people do, too. This is particularly true of children. Research shows a robust benefit when children are able to live in an area that is more economically diverse or connected to resources. The longer they are able to live in stable, healthy neighborhoods, the more positive their outcomes will be later in life. In turn, neighbors with higher incomes will benefit from the community investment and access to resources, too.
How Do We Pursue Mixed-Income Housing at FCS?
In our work alongside neighbors, we pursue mixed-income housing together. We work to help neighborhoods offer different housing types. We offer affordable rentals, affordable homeownership, and workforce housing for civil servants. This last category still boasts affordable prices, but is designed for people who can qualify for a loan but may not afford market rates. Some examples include local educators who received down payment assistance from partners. There are big benefits to having people like teachers and first responders living in the neighborhood, and we are proud to come alongside these neighbors to ensure they can live in the communities they serve.
Haven at South Atlanta, was our first multi-family development, featuring 84 rental homes. Of those homes, 71 of them will be offered at an affordable price to South Atlanta residents. We also offer financial products to ensure that people have access to mortgages. We began setting ourselves up as an emerging CDFI. This step helps us unlock opportunities for neighbors to build equity through homeownership.
What’s Been the Impact to Date, and What’s Next?
Decades ago, over 90% of the homes across South Atlanta were rentals, with many residents paying cash weekly to predatory lenders. We are so excited for the possibilities of how these neighborhoods will thrive in the future. The results so far have been incredible. We’ve renovated or constructed over 200 homes. 60% of our homes are owned by neighbors, and 25% of those homeowners have a lower income.
Even better, we have loved seeing those who find their home in South Atlanta stay for the long haul.
Mixed-Income Housing Director Cynthia McNeal says that she’s been to more than 60 closings over the past six years, but in those same years, she has only seen 3 people who purchased their homes with FCS move out of the neighborhood. This longevity, which mixed-income housing supports, enables neighbors to plant roots, grow together, and support each other’s flourishing.
We are so grateful for every neighbor who has decided to call South Atlanta home, and especially our legacy residents. They are the ones who have supported us over the decades, preserving history and welcoming new neighbors to South Atlanta. Every day, we are keenly aware that we stand on the shoulders of giants. As we see an equitable mixed-income community come to life, we are reminded that Historic South Atlanta was designed by Black Americans to be a mixed-income community from the very beginning. We are so proud to build on this legacy.
Next Steps
A mixed-income housing approach is only as strong as its relationships. We are so grateful for the many partners and neighbors who toil faithfully to see South Atlanta thrive. If you are working to see your neighbors flourish, we are hopeful that this article gives you a glimpse of how mixed-income housing might fit into that vision.
We would love to journey with you! Start a conversation with our Training and Consulting division by emailing shawn@fcsministries.org today.
