What is the requirement for mixed-use properties regarding occupancy?

Mixed-use properties are defined as buildings that combine residential and commercial spaces. The requirement that these properties must be primarily residential is based on the goal of ensuring that the residential component serves as the main function of the property. This is important in order to meet the needs of individuals seeking housing while also accommodating commercial activities.

When a mixed-use property is primarily residential, it helps to maintain a living environment that is conducive to residents' needs, enhancing the quality of life. In many financing programs, including those related to NACA, there's an emphasis on providing affordable housing solutions, and having a residential focus in these properties supports that mission.

This requirement also impacts how properties are evaluated for financing, ensuring that they align with the intended use and stability that residential areas typically provide. The emphasis on residential occupancy over commercial ensures that the residential component is prioritized, even in a mixed-use setting.