“Mixed-income” home development is an in-between approach that uses some of the profit generated by market-rate units in a development to subsidize lower-cost units within the same development and reduce reliance on public subsidies. Mixed-income allows for the delivery of truly affordable homes with less reliance on tax credits or other subsidies. 

Municipalities can promote mixed-income housing through inclusionary zoning tools that offer incentives like density bonuses. These incentives can be offered in exchange for reserving a certain percentage of units for low- or moderate-income individuals and families.  

Case Study: Bellows Falls Garage – Bellows Falls, VT  

The former Bellows Falls Garage is being repurposed by the Windham & Windsor Housing Trust to include 27 mixed-income units and ground-floor commercial space. The subsidy for more affordable units will come from revenue from market-rate units and a federal Community Development Block Grant.