Mixed income housing: everyone’s talking about it, but what does it really mean? And why is it one of the best ways to diminish the costs related to poverty and homelessness? We know you’ve got questions, so with over 40 years in the business, we thought we’d step into the arena to address them…along with a few things we thought important to add.

Read on for the answers to all the things you wondered about– and the things you probably didn’t know you didn’t know!

1. Mixed-income housing can be operationally sustainable

Mixed-income housing comes in many forms – almost as many forms as there are different organizations offering mixed-income housing. And those various forms encompass differences in both the way that rents are calculated and offered, as well as how the organizations are established and even taxed.

At Norfolk Housing Association, we have a unique 50/50 model whereby half of our renters pay market rents and the others pay rent-geared-to-income. This allows us to operate as a non-profit and to be operationally sustainable – in large part because non-profits do not pay tax on their income, which allows them to use that earned income to build community prosperity by reinvesting into community assets that can serve generations to come.

In fact, the rents generated from this model at NHA support the maintenance and ongoing upkeep of our buildings, a team of 8 dedicated professionals, and even a portable housing benefit program, where we provide rent supports to families we can’t house with NHA. The model allows NHA a greater capacity to plan for repairs and maintenance, maintain our assets in good condition, and require less reliance on economic or political changes in the awarding of funding.

Many other providers operate as charities (or even a combination of charity and non-profit!) and receive private and public donations to support their long term sustainability and ability to provide a mixed income solution to serve a specific portion of the population, which serves an important need in the market as well. More on all that next!

2. Mixed-income housing doesn’t have to be “one way”

As alluded to above, mixed-income housing comes in many varieties and serves all sorts of folks from all walks of life. There’s no ONE way and there’s no BETTER way. Each version of mixed-income housing serves a different need in the population and different approaches can also offer folks the dignity of choice in where to live.

Some organizations offer a split, like NHA, and combine market rents with below-market rents. Other organizations offer a wide variety of rents, a smaller rental span, and/or may include much deeper subsidies.

Ultimately, the format of the mixed-income housing on offer is a balance between the financial capacity of the organization based on their structure and the people they are meant to serve.

But what’s really important to note is that the complexity of need is what makes it important to have a healthy spectrum of housing types – ie. Permanent supportive housing, emergency housing, long-term affordable housing like NHA’s, and so on. This is why we say there is no one or better way – it takes all types to appropriately meet the need.

Previously understood housing spectrum - image from CMHC

Newly accepted model for understanding housing need - image from CMHC

3. It can be – and often is – very community oriented

One of the many wonderful things about most mixed-income housing is the diversity of folks that end up living together. It creates an opportunity for an exceptional sense of community, with neighbours caring for each other and almost no one preoccupied with the idea of who might have more “rights” to any one thing.

The overall sense and understanding (and one that NHA comes back to constantly as an organization) is that everyone deserves the right to home, and we can ensure that it’s a great home by working together to maintain it, make it joyful, and keep it safe for everyone.

4. Mixed-income housing prevents people from falling into homelessness

This one may surprise you! But mixed-income housing can prevent people from falling into homelessness.

First of all, a mixed-income model can create a sense of stability for folks if or when their economic situation changes. For example, any current resident of NHA whose economic situation changes drastically is automatically put to the top of the list for the next available subsidy. The goal, of course, is to keep someone homed – and keep them in their current home if at all possible.

NHA also focuses on overall rent stability across units, the stability of the community in which we live and work, and we embrace a theme of stability when revising operational policies as well. We have a dedicated Board of community members who keep pace with the needs of our residents and ensure our high operating standards and oversight for the organization.

As a non-profit, our motivations are not rooted in maximizing profits for shareholders. Instead, they are rooted in creating long-term stability and value for community members in need – those housed with us now and those who may need us in future.

5. It serves the broader community

First of all, non-profit mixed-income housing providers tend to be committed to affordability in perpetuity. Our motivations are not profit driven, but sustainability driven, so the conversation is always around ensuring the existing assets continue to provide housing affordability for generations to come by remaining in good working order.

Secondly, a diverse community is generally a thriving one, because a diversity of need ensures a diversity of amenities; it ensures easy access to schools, groceries, transit and even walking paths; a diverse community can improve cycling access, walkability scores and overall accessibility; with mixed-income housing initiatives, you’ll often find a variety of unique and functional development proposals; and mixed-income housing can fuel broader affordability throughout the entire city!

6. Mixed-income housing provides partnership opportunities for the sector

Mixed-income housing provides incredible opportunities for private landlords and developers to implement affordability options into their properties without having to be experts in the social sector.

They can seek out organizations like NHA to partner with and offer increased affordability in any number of ways, including implementing a below-market allowance, a subsidy allowance, or providing a certain number of units at discounted rates. The possibilities for improving affordability through partnerships like these is nearly endless – and extremely fruitful for the long-term health of a community.

Additionally, mixed-income housing providers can partner with and collaborate with any number of social services agencies to leverage community resources or skills and better serve residents. These partnerships allow mixed-income housing to serve a huge variety of folks from widely varying socio-economic backgrounds.

For example, NHA works very closely with Calgary Dollars to provide residents with supports ranging from financial, to digital, emotional, and beyond. The support they are able to provide residents, and the opportunities to connect and thrive, go way beyond NHA’s specialized skill set. The partnership ensures that everyone in our community has access to a wider network of support and relationships.

Interested in partnering with NHA, or have questions on how that could look? Email CEO, Maya Kambeitz to discuss.

7. Mixed-income housing preserves purpose built rentals

Preserving existing purpose built rental housing ensures the city maintains an adequate and healthy supply of rentals which stabilize rent amounts and provide choice. Modest purpose built rentals also ensure that those with modest incomes are not overspending on housing costs and allows folks the opportunity to move along the housing spectrum (see #2).

The benefits to preserving purpose-built rentals extend beyond housing supply, though. Preservation, as opposed to tearing down and rebuilding, can minimize negative environmental impact (situation-dependent), can help preserve community heritage and character, and can maintain stable rents.

8. It provides housing choice in the market

Mixed-income housing not only diversifies neighbourhoods in terms of the amenities available, but it creates access for more folks TO various amenities that they might otherwise be priced out of - and that often provide a better quality of life.

Adequate choices in housing, housing supply, and overall affordability can keep people out of unsafe, overcrowded, and otherwise inappropriate housing that could be detrimental to their health, wellbeing, and long-term success. It also allows people to live near the amenities most important to them and their families, for example schools, transit, or employment (in fact, many of our social impact renters work in the neighbourhood).

9. It allows people to move along the housing spectrum

The really wonderful thing about the mixed-income model is that it can allow for people’s shifting needs while permitting them to stay in their homes and communities as long as they need or want. As discussed in #4, NHA’s model allows people to move from market rents into rent-geared-to-income if they find themselves in economic need.

But the model also allows folks to build into market rents without losing their sense of home or community. Some people find that the stability afforded them in mixed-income housing eventually means that they can start paying market rents, continue to save, and in some instances even buy in the same neighbourhood.

Of course at NHA we believe that the correct long-term housing is the housing that offers someone the ability to stay, be part of community, and build a home.

What do you think? Did you learn something about mixed-income housing? We hope this can help you more fully understand why mixed-income housing is a valuable investment for the future of housing across Canada!

9 Things You Probably Don’t Know About Mixed-Income Housing