REF: A “Long” gravy train of government funded housing

 

By Robert Field 

LNP reports today “Long Crest senior housing project wins state funding.” (Sorry, once again a leading article isn’t posted on LNP’s  web site nor can it be found by its search engine.)

LNP reports that $1.2 M grant in tax credits towards the $17.8M cost for 52 senior units.

$17.800,000 comes to $342,000 per apartment.  If built  conventionally in the free market, it should cost between $100,000 to perhaps, at most,  $120,000 per apartment.

When ‘yours truly’ was building several decades ago, we were producing upscale apartments at about 80% of the cost of government subsidized units of far less space and appointments.   Now the ratio appears to be about 40% of conventional cost.

Of course the whole idea of subsiding apartment development is nonsense. Section ‘8’ programs provide rent subsidies that make up the difference between what a person or family can afford to pay and the apartment’s market price.  This gets the government 100% value for the buck and spurs more construction.

But there is no deep government troughs to feed all of the hangers on.  Hence Section “8′ is minimized, often made impractical through regulations.

Meanwhile taxpayer money flows for subsidized housing to lawyers, consultants, brokers,  appraisers, architects, engineers, sponsors, contractors and other.

A virtual feast!  But the tax payers aren’t invited.  Yet we get the bill.

 

 

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Updated: June 2, 2018 — 6:20 am

1 Comment

  1. I completely agree with your assessment, however this is hardly news unfortunately. I recall when Housing Development Corporation renovated the former Van Scivers department store for about $80,000 per apartment. That was in the mid to late eighties when two unit apartment buildings in Lancaster city could be bought for $50,000 to $80,000.

    “Non-profit” does not refer to the highly paid management of such organizations.

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