Tuesday, April 9, 2013

VIDEO: What is the cost of "Affordable" Housing?



Non profit developers actually have an incentive to build expensive housing. A bigger LIHTC tax credit to sell on the open market to wealthy investors gives them a greater revenue. Here is a news report of a Maine project where the local cost for affordable housing is far in excess of local real estate development costs. This is one of the "secrets" housing advocates don't want you to know. Bridge Housing, proposed developer of Marinwood Village just completed a similar project in Emeryville at $500,000 per apartment or roughly 3 times the per square footage cost of single family homes in Marinwood/Lucas Valley.

 You have to wonder... It would be cheaper to buy foreclosed homes and renovate .. but alas developers can't make money doing this.


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