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The Spatial Concentration of Subsidized Housing - Poverty & Race ...

The Spatial Concentration of Subsidized Housing - Poverty & Race ...

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elicited personal opinions about the neighborhood. Properties in close proximity tothe subsidized units saw values rise. This effect was most likely due to the fact thatmany <strong>of</strong> the properties acquired were vacant and underwent considerablerehabilitation. This small scale impact was insufficient to change neighborhooddynamics at a larger scale. Focus groups were aware <strong>of</strong> and concerned about othersubsidized housing in their neighborhoods besides the scattered sites and in generalwere concerned with the quality <strong>of</strong> rental maintenance, both subsidized andunsubsidized, in their neighborhoods. <strong>The</strong> authors conclude that post-occupancyproperty management is crucial and that a negative effect <strong>of</strong> more units in vulnerableneighborhoods suggests there may be a maximum threshold which triggersneighborhood decline regardless <strong>of</strong> distance.Lee (2008) studied the change in property values surrounding multiple sitebased housing including public housing, other HUD site-based housing and the LIHTCin five MSA’s and found that results varied by type <strong>of</strong> housing, proximity, andconcentration. Public housing reduced home values while LIHTC results were mixed.Positive effects depended on the number <strong>of</strong> units.Lyons and Loveridge (1993) studied the impact on property values <strong>of</strong> varioustypes <strong>of</strong> subsidized housing in Ramsey County, MN and found that the number <strong>of</strong>units had a small but statistically significant negative effect which diminished withdistance from the subsidized housing. Larger projects had more <strong>of</strong> an impact thanindividual units being added to neighborhoods.24

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