What defines a "mixed-income" strategy in LIHTC developments?

A "mixed-income" strategy in Low-Income Housing Tax Credit (LIHTC) developments refers to the inclusion of both low-income and market-rate units within the same property. This approach is designed to create a diverse community where residents of various income levels can coexist, fostering an economically diverse environment.

The rationale behind this strategy is to enhance the sustainability of affordable housing developments by allowing a mix of income levels, which can lead to increased stability for the entire community. By including market-rate units, developers can generate additional revenue that can help subsidize the lower rents of the affordable units without compromising the overall mission of providing affordable housing.

In contrast to this, a focus solely on high-income tenants does not align with the principles of the LIHTC program, which aims to support low-income households. Building units only for single families or exclusively subsidizing public housing also diverge from the mixed-income model. The mixed-income strategy is integral to breaking down socio-economic barriers and promoting inclusivity in housing, making the correct answer a crucial concept in understanding LIHTC developments.