What determines Property Value?

One of the issues I have with buying a loft downtown is the proximity to some of Detroit urban projects. I was all set to make an offer on a unit so, as most wimps do, I asked my dad to come down to check it. Apparently I gave him poor directions because he ended up making up his own and took a freeway exit behind the development. It turns out that one of the rougher housing projects in the city was about 5 blocks behind were I was thinking about buying. I was curious to see how this would impact property value, because I like to believe the developers have some idea of what they are doing, so I did some research. One of the articles that I found said that many studies have concluded that supportive housing does not impact the value of properties in the area. I am not sure whether that is true or not because I have to believe that who ever wrote that article has never been to the Brewster projects in Detroit or, for that matter, would survive if they did but, none the less, I hope that person is correct because the place I have reserved is not real far down the road. Article Link