An Intellingencer New Era article “From shoes to homes, Work begins to transform city factory into apartments” reports that 24 “low-income” apartments will result at a cost of $5,100,000.
According to the article, “Financing for the venture is coming from the Pennsylvania Housing Finance Agency, which is passing $1,365,000 to the project from federal economic stimulus funds. The remainder is being funded by Fulton Bank and federal HOME Investment Partnerships Program money from the city and the county housing and redevelopment authorities.”
That amounts to $212,500 per unit, perhaps twice the cost of tearing down the building and constructing afresh under conventional circumstances. Furthermore, existing apartment buildings could be acquired within or in proximity to the city for $60,000 to $80,000 per unit and refurbished for $10,000 a unit.
This has long been the case with public subsidized housing construction. It is meant to help the poor but, at least initially, benefits the rich and well off at unnecessary cost to the taxpayers who pay for grants and subsidize financing.
The best thing that can be said about the project is that it will help stimulate the economy at a time where there is a dire need.
Just what we need in the city more low income housing that will attract those people looking for subsidized housing and very little taxable revenue. I am sure Mr. Egan and his partners will make out very well with the income off of this property.