Policymakers should use funding mechanisms aligned with AARP’s Taxation Principles. When regressive funding mechanisms, such as user fees, are used, policymakers should evaluate who will bear the costs and realize the benefits to ensure that people with low incomes should receive as much benefit as what they pay. They should also take into consideration the financial burden on people in rural areas. Any incentives offered by either the private or public sectors should be equitable and consistent with AARP’s Livable Communities Principles. State and local governments may also use tax credits, bond proceeds, and redevelopment funds to increase housing options for people with low incomes.
Industry should pay its fair share in funding livable communities projects. For example, developers should pay the cost of infrastructure improvements needed to support new housing developments and should create affordable housing units in addition to market-rate housing (see also Chapter 11, Financial Services and Consumer Products - Digital Privacy and Security).