By Robert Field
An LNP article “CH&E to bul Wilkes-Barre affordable housing project” reported a $14 million budget to build 56 units, which comes to $250,000 a unit.
This must be at least $75,000 per unit, and perhaps $100,000, more than it would cost to develop such a project conventionally.
This is not a negative reflection on the contractor but rather an example of how so many others get to ‘dip their beaks into the public trough’ and thus run up the costs.
The efficient way to provide more housing is through federal rental subsidies. This works very well in New Jersey. Unfortunately Pennsylvania sets unrealistically low limits on the subsidies and thus emasculates the program.
When the disadvantaged are in a position to combine their rental payments plus government subsidies for moderately priced existing apartments, no one gets windfall profits and, through (pardon the paraphrase) trickle up impact, new conventional (non subsidized) construction of housing is stimulated.
But gaining windfall profits at public expense is the name of the game, isn’t it?
