I have mixed feelings about the proposal to create mother-in-law apartments in my (expensive) neighborhood. Similar neighborhoods in Boston and Chicago seem to be developing multistory buialdings that fit in with single family homes. I do not know how these buildings are bing built but it seems ot me that multifamily housing, done well, can improve a neighborhood and actually add to its value. I call my idea LRID: local real estate improvement district.
Mother-in-law apartments run several risks. They are very difficult to regulate and there many reasons to wonder if they will not become yet another over-priced alternative to the studio condo or the overcrowded housing used by students.
Like mother-in-law apartments, multifamily housing built by LRIDs fill several needs. The new apartments work with the neighborhood and can ENHANCE property values . They can also make money for the owners of existing homes without inuring costs of management and maintenance.
Certainly this means adhering to neighborhood character when designing the building. However, the new building can also create a space for neighborhood friendly retail or a city service ..e.g, a library, gym or swimming pool. By working with transit, the new housing density can justify transit that makes it easier for the single family folks to use transit ..eg to get to airport or downtown jobs. By working with the schools, new construction like this can attract younger and more diverse families that can support a public school.
So, this makes me wonder … could such a thing be financed through a city bonded LRID … local real estate improvement district? Done well it would improve local home values.. A surtax on the neighborhood might work or neighbors might be allowed to BUY the bonds. Use of city bonding authority would make these bonds be very low risk, assuring a great return. The bonds themselves might be tax-free and the investors, all locals living near the LRID, would earn monthly income from rent instead of depending on a long term capital gain.