Are there any more specifics about this? Are you asking if your neighbour is subsidized housing, or if there is such housing on your street or neighbourhood?

Neighbour is subsidized housing. In other words, will affordable housing lower neighbouring property values? Are the sales prices higher or lower when affordable housing is nearby?

Lower.

Nicanor,
Government housing close to your home may impact the value depending on your proximity to the housing. Although their is no direct link to support that government housing=higher crime rates, their is a negative stigma associated with it. This means that most people would prefer to not live closer to government housing and in turn would have an affect on the price of the home.
Andrew Tamburello
Sales Representative
Brekland Realty Group

If anyone has been to the Rivertowne development b/w queen and dundas just off Broadview you'll know the answer is absolutely YES! Here you've got a group of townhouses with one side of the street as owned Condos and community housing in the other. The condo side is manicured and residents obviously take care of their properties while the other side is overrun with weeds, 10 different satellite dishes anchored to the side of each unit, 10 bikes strewn on each lawn etc.... Looks absolutely terrible. Units at Rivertowne take on average 100% longer to sell at prices severely below the neighbourhood average. Same can be said for other mixed housing developments in the city.
However I do believe this concept can work in a condo building where certain units are designated for community housing. Walking down a condo hallway you wouldn't be able to tell the difference and likely wouldnt impact values there.
If I had the choice I would look elsewhere but sometimes these homes close to community housing can offer more affordable options that you can't find anywhere else. If I was a first time buyer and this was the only option for me I may jump in and make the purchase just to get my foot in the door but only if it was a newer development in a good neighbourhood like Rivertowne.
Anyway, there are many factors to consider regarding community housing but I'm sure your sales rep or brokert can walk you through it.
Ara Mamourian - Broker of Record/Owner
Spring Realty Inc., Brokerage
Www.springrealty.ca
416-628-1088
Ara@springrealty.ca

Impact of affordable housing will lower home values, but the value of home usually depend on their visible condition and other broader aspects such as overall area development and design. However, if you wish to see the elaborated discussion on this topic then you can check out habitat.org that has highlighted the points accurately. If you still have any query related to any point then you can seek help from professionals like Leonard Albanese@ http://www.linkedin.com/pub/leonard-albanese/61/523/ab0  profile who will guide you in the right direction. 

It is not the presence or absence of affordable housing nearby that will increase or decrease the value of a property. The state of the properties both affordable and otherwise, the general development of the area, the prosperity will be the deciding factors. If the affordable housing is properly maintained, is not an eyesore and has not led to increase in traffic or increase in crime or increase in congestion, it will not have an impact on the neighbourhood property prices.

I think affordable/subsidized housing has less of a negative stigma than before as more and more such housing are being mixed in with free market condos as parts of city becomes gentrified and redeveloped. Some good examples would be the east side of downtown Toronto, such as Regent Park, Don Lands/Pan Am Games site, and St. Lawrence Market.