07-28-1997 EDA - Laserfiche WebLink

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7-25-1997.0:07AM FROM MSP REAL ESTATE. INC. 612 336 4565 P. 9 • Micholik M • Low-Income. Housing in Our Backyards?V.� :hat mai n ens to �p Residential Property Values? • . . . •• • .• . A market analysis Of four very low4income family housing developments in four • growing Chicago suburban market areas was conducted.Despite e►xpecta • tions to the contrary,the evidence indicated that iovoincome housing does not necessarily lower the value of surrounding residential property or curb further successful market development in the immediate area..The conditions con- . . tributing to the success of the four projects analyzed'include good community planning,good design and buttering of the sites,and good property manage- ment. • • • of in my backyard!This shout is espe- • Will residential property values in the •• • daily strident when the proposed develop- neighborhood plummet when low- went is low-income housing—row after income housing is built next door? • row of crowded,ugly,cheaply constructed The certainty about low-income hoes- • buildings, garbage strewn everywhere, dirty curtains partially hanging from bent mg is that the residents have met govern- Every- rods over screenless windows, and bat- mex�t•estabIished income criteria. Every thing else is a variable—the density, the tered cars rusting to death in the parking construction materials and design, the Iot.This image gives rise to a typically neg- maintenance and management,and the re- ative reaction. Who would choose to live sultant effect on neighboring residential • next door to such a place as that? property values. This study suggests that Midway through the 1990s, 30 years the stereotype is not necessarily accurate into `The Great Sodety" housing pro- Wand the fear is not necessarily founded. grams, and 20 years into the Section 8 Further,it reveals that low-income housing housing experiment,can we answer these built right in our backyards might have no questionw? effect at all on property values. • Is the low-income housing stereotype . In mid-1994,a suit was filed seeking to accurate? prevent the Illinois lousing Development • Does the commonly held fear of low- Authority (IHDAM from financing the de- income housing have foundation? velopnnent of 180 units of very low-income W` Michael S.MORous,MAI.is president and owner of MaRous and,,Company.a real estate appraisal firm.in addt ion to providing documented appraisals.high `t and best use studies,and marketability and feasibility studies.he has served as an expert vrtri n proceedings.Past president of the Chicago Chapter of the Appraisal tnstitete.,Mr.MaRbus iilafitsilifflOchair of the Political Affairs Commit-.„ tee.A graduate of the University ofillirtoN041h a degreeirt Cain land economics.he has published`dd01 . cies in*variety of professional Jourriab.