Scattered sites for low-income housing break the mold of public housing by integrating affordable units within existing communities.

Scattered-site housing is a model of public housing where units are dispersed throughout different neighborhoods rather than concentrated in a single location. This provides several benefits, including reduced stigma associated with public housing and greater opportunities for residents to participate in community life.

Types of Scattered-Site Public Housing

Scattered-site low-income housing isn't a one-size-fits-all solution. It takes many forms. 

Single-Family Homes

Single-family homes are individual houses that are spread throughout a community. They provide families with a sense of ownership and privacy, often featuring yards and garages. 

This form of public housing is often found in residential areas with low-density zoning, where larger multi-unit buildings may not be permitted.

Duplexes and Townhouses

Duplexes and townhouses are semi-detached homes that share one or more walls with adjacent properties. They allow for a higher density of housing units in an area than single-family homes. However, they maintain many of the same benefits, such as a separate entrance and outdoor space.

Small Apartment Buildings

Scattered-site public housing can also include smaller apartment complexes distributed within a neighborhood. These buildings typically contain fewer units than larger complexes and may blend in more seamlessly with the neighborhood's overall character.

Converted Properties

Some cities and organizations have converted non-residential properties or foreclosed homes into scattered-site housing. This type of housing strategy can be a win-win situation. It revitalizes buildings that are no longer in use or have been abandoned, bringing new life to the neighborhood. At the same time, it increases the availability of low-income housing.

Benefits of Scattered-Site Housing

Scattered-site housing primarily serves low-income individuals and families who meet specific eligibility criteria. By integrating these housing units into diverse neighborhoods, residents often gain access to different schools, job opportunities, and community resources.

Community Integration

Unlike traditional public housing, which can result in economically and socially isolated pockets, scattered sites for low-income housing help mix income levels and prevent the stigmatization of low-income families. This approach encourages diversity and fosters understanding among people from different socioeconomic backgrounds.

Access to Opportunities

By locating affordable housing units throughout a city or town, scattered-site housing can give residents access to a range of opportunities. This could include quality schools, healthcare facilities, job opportunities, and other community resources. The ability to live in neighborhoods with these resources can greatly improve the quality of life for low-income families.

Neighborhood Revitalization

In many cases, scattered-site housing involves the rehabilitation of existing properties. This not only increases the supply of affordable housing but can also breathe new life into neighborhoods. The process of renovating these properties can improve the aesthetic appeal of the area, stimulate economic activity, and enhance community pride.

Mitigation of Poverty Concentration

Scattered-site public housing can help mitigate the negative impacts of concentrated poverty. High concentrations of poverty can exacerbate issues, such as crime, poor health, and low educational achievement. By dispersing affordable housing units across various neighborhoods, scattered-site housing can help mitigate these effects and promote upward mobility.

Flexibility

Scattered-site housing offers flexibility that traditional housing options may lack. It can be adapted to suit the character and needs of individual neighborhoods. Whether it's transforming a single-family home, a duplex, or a small apartment building, this housing method can provide a variety of options to fit diverse community needs.

Challenges of Scattered-Site Housing

While scattered-site programs hold the promise of offering more integrated, diverse communities and potentially improving the lives of low-income families, they also present several challenges. Understanding these possible drawbacks can help better navigate and manage these programs.

Management Complexity

The dispersed nature of scattered-site housing inherently makes the properties more challenging to manage than those concentrated in one location. Administrative tasks, such as maintenance, property inspections, and tenant communication, become more time-consuming and expensive due to the geographical distance between properties.

Higher Costs

The acquisition costs of scattered-site units are higher due to the nature of purchasing individual properties dispersed throughout a city or town, as opposed to buying or leasing a single, larger property where a traditional public housing development could be constructed. Individual purchases often do not offer economies of scale that bulk buying could provide.

Moreover, the prices of individual properties are subject to market forces, meaning that in high-demand or gentrifying neighborhoods, the costs can be heightened. The goal of scattered-site housing is to integrate low-income households into a variety of neighborhoods, including middle- and upper-income areas. However, properties in these desirable neighborhoods often come with elevated price tags.

Renovation costs also contribute to the financial strain. Given that scattered-site housing often involves the purchase of existing buildings, there may be substantial rehabilitation costs to ensure that these units are safe, comfortable, and up to code. Older buildings may have issues, such as lead paint, asbestos, or outdated electrical or plumbing systems, that need to be addressed.

These high acquisition and renovation costs can put pressure on housing authorities or non-profit organizations operating with limited budgets. They may need to seek additional funding sources, such as state or federal grants, low-income housing tax credits, or partnerships with private developers, to cover the costs.

While these factors present formidable financial challenges, they are not insurmountable. Through innovative financing strategies, effective partnerships, and careful planning, housing authorities can successfully implement scattered-site public housing despite these costs. 

Community Resistance

Scattered-site housing sometimes faces resistance from community members who may have misconceptions about affordable housing and its impact on property values and neighborhood character. This "Not In My Backyard" (NIMBY) mentality can hinder the development of scattered-site housing.

Potential for Isolation

While scattered-site public housing aims to foster integration, without proper support, residents may feel isolated or disconnected in their new neighborhoods. This is particularly the case if there's a lack of nearby services or public transportation.

Limited Scope

Due to higher costs and management complexity, scattered sites for low-income housing may provide fewer units than traditional affordable housing developments. This could mean that fewer people in need are served.

Gentrification Concerns

In some areas, scattered-site housing may unintentionally contribute to gentrification. If low-income housing is established in up-and-coming neighborhoods, it could inadvertently accelerate the process of gentrification, potentially pushing out original residents.

Tenant Screening and Support Challenges

Scattered-site programs often require extensive tenant screening to ensure residents can thrive in their new environment, and this process can be labor-intensive. In addition, providing ongoing support services to residents across various locations can be logistically difficult and costly.

How Scattered-Site Housing Is Funded

Scattered-site housing is frequently funded through a mix of government subsidies and private investment. Successful implementation of these programs requires collaboration between housing agencies, community organizations, and stakeholders.

Federal Government

The U.S. Department of Housing and Urban Development (HUD) offers various funding programs that can be used for scattered-site housing. The Community Development Block Grant and HOME Investment Partnerships Program are two prominent examples. 

HUD also provides subsidies, such as Section 8 vouchers, to help low-income residents afford scattered-site housing.

State and Local Governments

State and local housing agencies often provide funding for affordable housing development, including scattered-site programs. This can come in the form of grants, loans, tax credits, or direct subsidies.

Low-Income Housing Tax Credits (LIHTC)

This federal program provides tax incentives to private investors who develop affordable housing. Many scattered-site housing projects have been financed using LIHTC.

Private Sector

Banks and other financial institutions often provide loans for affordable housing development. Community Reinvestment Act (CRA) requirements can motivate banks to lend to these types of projects. Additionally, real estate developers and private investors can fund projects, often in combination with public subsidies or tax credits.

Non-Profit Organizations

Non-profit housing organizations often play a crucial role in scattered-site housing. They may develop and manage properties themselves or provide funding to other organizations to do so. They often rely on a mix of public funding, private donations, and foundation grants.

Philanthropic Foundations

Some foundations provide grants to support affordable housing initiatives. These foundations may be national in scope or focused on specific communities.

The Impact of Scattered-Site Public Housing

By promoting socioeconomic integration and neighborhood revitalization, scattered-site housing represents a promising approach to public housing. Embracing scattered sites for low-income housing has the potential to create more inclusive, diverse, and thriving communities.

To learn more about affordable housing solutions, check out our HUD Housing Guides.