Does Affordable Housing Affect Neighborhood Property Values?

NEW -> Contingent Buyer Assistance Program
If appearance of the neighborhood affects property values. Then I say, "Yes."



I have driven by certain apt. complexes designated for affording housing. And off the balconies I would see, the tenants hanging their laundry out to dry. Also, the balconies are used as storage spaces. I have seen in-door furnitures, multiple bicycles, over size plants, satellite dishes, etc. all in the balconies.
 
I lived next to affordable housing units, it is the same thing as living next to cheap apartment complexes-drugs, shoot outs, 30 poor relatives visiting their more fortunate relative every weekend, they are all going to hang out by your front door, kick the ball at your garage, let their rottweilers chase your kids. Loud music, late-night parties on the weekdays, the whole nine yards (because they don't have a job, you know :)

My point being: if you have a choice of where to live, don't live next to the affordable housing.
 
[quote author="blackacre-seeker" date=1223040079]I lived next to affordable housing units, it is the same thing as living next to cheap apartment complexes-drugs, shoot outs, 30 poor relatives visiting their more fortunate relative every weekend, they are all going to hang out by your front door, kick the ball at your garage, let their rottweilers chase your kids. Loud music, late-night parties on the weekdays, the whole nine yards (because they don't have a job, you know :)

My point being: if you have a choice of where to live, don't live next to the affordable housing.</blockquote>


I would agree with blackacre. He basically hit all the points as to why.



Caution*** I'm not saying, and I don't think blackacre is either that all poor people are criminals. However, studies shows that poor people are more likely to committ crime than rich.



Ask yourself the opposite question...would affordable housing increase the value of your property? If you think not, then the opposite would take place.



EDIT: Spelling/Grammar errors....I just woke up...
 
[quote author="Astute Observer" date=1223036276]The price/qualification is a joke anyway, so most of them goes to someone who know how to work the system, not someone who needs/deserves it. I would say it is not an issue.</blockquote>


If it's for sale affordable, than you are absolutely correct astute. Affordable housing will go to people who know how to game the system based upon the conflict between income requirements and downpayment requirements. I.e. requiring 50% down on a $250K home, this is the case as based upon a $70K max income for moderate income individual who cannot spend more than 1/3 gross income on cost associate with home (mortage, intrest, util, hoa, tax).



However, affordable for rent usually goes to people who will decrease the value of your neighborhood, but of course, they are typically buried in large apartment complexes anyways so they won't really have an affect on for sale as they aren't in for sale communities.
 
On a bright side though, if you do end up living close or inside the low income housing, the turnover is very high. So if a neighbor bothers you, just wait a little. One day when you are walking by you will see a sheriff's eviction notice plastered on their door. True story-happened to me twice.

Most of the problems arise because of the high density in such neighborhoods/apartment complexes. The noise is a big issue for me, so I dream about the day I can afford to have a big backyard so I won't have to hear my neighbors anymore... I think I'll start a thread on how to deal with bad neighbors, I have a ton of wisdom to share in that department :)
 
Does anyone know what percentage of apartments the Irvine Company has to set aside for low income housing in each complex?
 
[quote author="ABC123" date=1223159767]Does anyone know what percentage of apartments the Irvine Company has to set aside for low income housing in each complex?</blockquote>


It depends on the community, when it was built and what sort of incentive they want.



I think some of the higher end apt communities don't have any and some are all affordable. All new apts are almost legally required to have some percentage of affordable but it depends on what tier, moderate, low or very low.
 
[quote author="blackacre-seeker" date=1223122434]The noise is a big issue for me, so I dream about the day I can afford to have a big backyard so I won't have to hear my neighbors anymore... I think I'll start a thread on how to deal with bad neighbors, I have a ton of wisdom to share in that department :)</blockquote>


Please do share your thoughts. Here at San Carlo Villa we don't deal with the low income much, but due to the proximity to UCI we do have pockets of noise from UCI kids living in $2,500 apartments. Wonder who is paying their bill? I just can't understand why those kids would want to live here. It's like familyville for the most part, maybe 1 out of 10 in our corner of the complex don't have young childr.en. And then they rent one apartment to a couple of college girls, and everyone is pissed off.



Can you be a NIMBY if you rent an apartment? If so, I'm right there with you, Mrs. BK
 
[quote author="CK" date=1223162994][quote author="blackacre-seeker" date=1223122434]The noise is a big issue for me, so I dream about the day I can afford to have a big backyard so I won't have to hear my neighbors anymore... I think I'll start a thread on how to deal with bad neighbors, I have a ton of wisdom to share in that department :)</blockquote>


Please do share your thoughts. Here at San Carlo Villa we don't deal with the low income much, but due to the proximity to UCI we do have pockets of noise from UCI kids living in $2,500 apartments. Wonder who is paying their bill? I just can't understand why those kids would want to live here. It's like familyville for the most part, maybe 1 out of 10 in our corner of the complex don't have young childr.en. And then they rent one apartment to a couple of college girls, and everyone is pissed off.



Can you be a NIMBY if you rent an apartment? If so, I'm right there with you, Mrs. BK</blockquote>


The UCI kids live there because they could not get a place closer to school. (There is always a wait list for the apartments nearest UCI)
 
Wait, I thought UCI's majority of students are Asian and I always thought that majority of Asian kids don't party, they just study all the time and play their violin?

OK, I'm going to start that neighbors thread now :)
 
[quote author="blackacre-seeker" date=1223211938]Wait, I thought UCI's majority of students are Asian and I always thought that majority of Asian kids don't party, they just study all the time and play their violin?

OK, I'm going to start that neighbors thread now :)</blockquote>


Ha! Just what about the asian girls? :lol:



We have some asian neighbors here who party. They are not overly loud, but it can get annoying. When 8-10 of the people around them complain, its a slam dunk.



-bix
 
With the deed and qualification restrictions placed on most "affordable" housing units this basically makes it like a separate class of housing. Like in stocks, the different classes trade based on their demand and who can buy it. They're somewhat related but generally they wont impact your value. Most of your comparable sales should be from the "common stock" if a "restricted stock" is included in your value you should exclude it.



Most of these affordable housing programs are in areas within HOAs. They have to pay full HOA dues and comply with the rules. If the appearance of their unit is impacting your value then take it up with the HOA. Most of them have rules and they can impose them on them. If a rule doesn't exist, get enough votes and have it added.
 
[quote author="blackacre-seeker" date=1223211938]Wait, I thought UCI's majority of students are Asian and I always thought that majority of Asian kids don't party, they just study all the time and play their violin?

OK, I'm going to start that neighbors thread now :)</blockquote>
Dream on. We used to rent an apartment near UCI. We were on the top floor and the people below us were students from UCI. We had to knock on their door and tell them to be quiet. We had to call the police because there were drunks in the parking space fighting.
 
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