Article from Reason by Christian Britschgi.
In September, the Government Accountability Office (GAO) released a report on the costs of affordable housing projects funded by the federal government’s Low-Income Housing Tax Credit (LIHTC) program. In a footnote, the report noted that one California development had costs as high as $739,000 per unit.
The report didn’t name the development, but GAO provided Reasonwith a data file listing individual projects, as well as information on their final costs and total number of units. After adjusting for costs-per-unit, the 33-unit, $24.4 million Tilden Terrace, a collection of shops and apartments in the wealthy Los Angeles suburb of Culver City, ended up as the top of the pile.
Tilden Terrace might not look the way you expect from an affordable housing development. The building boasts a yoga studio that advertises itself as the first yoga studio for children in the Los Angeles area, as well as an orthodontist’s office, and a Japanese restaurant where you can order a $34 sushi plate with Halibut, Blue Fin, and Kurodai. It’s a contemporary building with a colorful façade that won an architectural award in 2014. And taxpayers are paying dearly for it.
The $739,000 per-unit price tag is not only higher than in Texas, where affordable housing units cost $126,000 on average, it’s nearly double the median cost of $326,000 in California. And it’s $100,000 higher than the median price of buying an unsubsidized, market-rate home in nearby Los Angeles, one of the most expensive cities in the nation.
Read the entire article at Reason.
Image Credit: By Jericho [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons
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Maybe they are corrupt and pocketing the extra money.
California is corrupt! Since the Democrats are in control they readily steal from the tax coffers. They are all horrible people with a strangle hold on the people. Sanctuary cities, illegals with free rein, depriving the people of their weapons so they cannot defend themselves, and fixing the voting laws so they can cheat and shut other parties out. Liars, cheats, scalawags..all should be driven from office and jailed
the government is running rampant with this kind of bloated cost in every department of the government, because once a contract is approved it is never checked on for price hikes, and it happens almost every time. It’s nothing new, it’s been going on for almost as long as the country has existed, because it’s the nature of some people to screw others at every turn. I’ve seen it time and time again in my 73 years, and it won’t stop any time soon, because the fraud continues to go unchecked. DRAIN THE SWAMP !!
Pelosi must be in on that