What are the best practices for conducting a feasibility study involving mixed-income housing?

2 Assess the site and location

The next step is to assess the site and location of the proposed mixed-income housing project. You need to consider the physical, legal, environmental, and social aspects of the site and its surroundings. For example, you need to evaluate the site's size, shape, topography, accessibility, infrastructure, zoning, land use, ownership, title, easements, encumbrances, environmental hazards, historical significance, and aesthetic appeal. You also need to analyze the location's demographics, income levels, housing demand and supply, market trends, competitors, amenities, services, public transportation, and community engagement.

3 Estimate the costs and revenues

The third step is to estimate the costs and revenues of the mixed-income housing project. You need to prepare a detailed and realistic pro forma that includes all the sources and uses of funds, as well as the projected cash flows and returns. You need to account for the different types of costs and revenues associated with mixed-income housing, such as land acquisition, site preparation, construction, financing, marketing, leasing, management, maintenance, taxes, subsidies, grants, incentives, rents, fees, and sales. You also need to consider the risks and uncertainties that may affect your assumptions and projections, and conduct sensitivity and scenario analysis to test the viability and profitability of your project.

4 Identify the partners and stakeholders

The fourth step is to identify the partners and stakeholders involved in the mixed-income housing project. You need to establish and maintain good relationships with the people and organizations that have an interest or influence in your project, such as the local government, the housing authority, the lenders, the investors, the contractors, the consultants, the tenants, the buyers, the neighbors, the media, and the public. You need to communicate your goals and objectives, solicit their feedback and input, address their concerns and expectations, negotiate their roles and responsibilities, and secure their support and commitment.

5 Evaluate the alternatives and options

The fifth step is to evaluate the alternatives and options for the mixed-income housing project. You need to compare and contrast the different ways of achieving your goals and objectives, such as the design, size, mix, quality, style, and features of the housing units, the financing, ownership, and management structures, the affordability, eligibility, and occupancy criteria, and the marketing, leasing, and sales strategies. You need to weigh the pros and cons of each alternative and option, and assess their feasibility, desirability, and suitability for your project.

6 Make a recommendation and action plan

The final step is to make a recommendation and action plan for the mixed-income housing project. You need to summarize your findings and conclusions from the previous steps, and explain why you chose a certain alternative or option over the others. You need to provide a clear and convincing rationale for your recommendation, and highlight its benefits and advantages. You also need to outline the steps and tasks that need to be done to implement your recommendation, and assign the resources, timelines, and responsibilities for each step and task.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?