Question: A city is seeking a higher tax-based income while implementing long-term solution for housing. They are looking to implement a project in two phases as

A city is seeking a higher tax-based income while implementing long-term solution for housing. They are looking to implement a project in two phases as they collect taxes from it: 1) demol- ishing substandard houses to provide land for the new development, and 2) building new houses. The following is a summary of the situation: 1. The city evaluated that they can demolish up to 300 substandard houses in an old big lot. Each house is built on a 0.25 acre land. The cost of demolishing a house is $2,000. 2. They are considering four types of home to be built. Land sizes needed for a new single-, double-, triple-, and quadruple-family homes are 0.18, 0.28, 0.40, and 0.50 acres, respec- tively. Streets, open space, and utility easements account for 15% of available acres. 3. In the new development, the triple and quadruple units account for at least 25% of the total number of new homes. Single units must be at least 20% of all units, and double units must be at least 10%. 4. The tax that the city would receive per unit for single, double, triple, and quadruple units is $1,000, $1,900, $2,700, and $3,400, respectively. 5. The construction cost per unit for single-, double-, triple-, and quadruple- family homes is $50,000, $70,000, $130,000, and $160,000, respectively. The maximum budget that can be obtained from a bank is $15 million. How many units of each type should be constructed to maximize tax collection?

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