For decades, public housing was a visible and politically stigmatized reminder of urban poverty. Originally designed to accommodate an upwardly mobile segment of the working poor, public housing had inherent flaws. In addition to the visual consequence of such community’s, locations with concentrated poverty suffered from increased crime and violence. Furthermore, and equally significant, these communities did not enable upward mobility, with work too far away, local education poor and little to no access to nutritional food and/or healthcare.
For the real estate business, there is usually an intrinsic aversion to developing mixed income housing and dedicating a portion of their units to affordable residents. The income structure and benefits for the developers and investors is complicated. As a result, the demand for affordable housing exceeds the supply.