Project beneficiaries. Where will the benefits accrue? For example, if the target group is the homeless, then the homeless portion of the program should clearly be larger and useful to that population. A community may rationalize that producing more market-rate housing in the neighborhood will create a trickle-down effect so that low-income and homeless groups will have access to the available “old” supply while the upwardly mobile households purchase or rent the market-rate housing. But this concept does not work in reality. If providing housing for the homeless, the community must target housing for that population group.

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