Tax Credit Housing Project Costs Continue To Be “Ridiculous.”
The post Tax Credit Housing Project Costs Continue To Be “Ridiculous.” appeared on BitcoinEthereumNews.com. Sen. Todd Young (R-IN) talks to reporters just off the floor of the Senate Chamber. Senator Young … More remains one of the biggest boosters of the Low Income Housing Tax Credit (LIHTC) program in spite of it’s costs (Photo by Chip Somodevilla/Getty Images) Getty Images There is a shocking story in the Washington Post with the headline, These publicly funded homes for the poor cost $1.2 million each to build. For me, what’s shocking is not the cost, but that there is surprise among the people quoted in the story, especially a Washington D.C. City Councilmember who attended a ribbon cutting for the project only later to find out the price tag. I’ve been watching the per unit cost of “affordable” housing, especially projects built using Low Income Housing Tax Credits (LITHC) climb for years. That simply is not a surprise to me or anyone else paying attention. That the Washington Post and local political leaders are just now figuring this out is scandalous and only emphasizes the ongoing need for reform. The Post story highlights 5 projects that range from $785,293 per unit to the $1,182,017 per unit. Costs for LIHTC projects continue to be “ridiculous.” Screen shot of chart by the Washington Post Taking the math further, that’s 468 units for a total of $438,262,683 or $936,458.72 per unit. To get a sense of the scale of this spending, consider that the average house in Washington D.C., according to Zillow, sells for $607,908, or $328,550.72 less than the average cost of the units created in these projects. Also consider that for the price of building 1 unit at the pricey Ontario Place project, one could buy two homes in the District of Columbia, priced at $591,008 each. Finally, in Adams Morgan where the Ontario Place project was…
The post Tax Credit Housing Project Costs Continue To Be “Ridiculous.” appeared on BitcoinEthereumNews.com.
Sen. Todd Young (R-IN) talks to reporters just off the floor of the Senate Chamber. Senator Young … More remains one of the biggest boosters of the Low Income Housing Tax Credit (LIHTC) program in spite of it’s costs (Photo by Chip Somodevilla/Getty Images) Getty Images There is a shocking story in the Washington Post with the headline, These publicly funded homes for the poor cost $1.2 million each to build. For me, what’s shocking is not the cost, but that there is surprise among the people quoted in the story, especially a Washington D.C. City Councilmember who attended a ribbon cutting for the project only later to find out the price tag. I’ve been watching the per unit cost of “affordable” housing, especially projects built using Low Income Housing Tax Credits (LITHC) climb for years. That simply is not a surprise to me or anyone else paying attention. That the Washington Post and local political leaders are just now figuring this out is scandalous and only emphasizes the ongoing need for reform. The Post story highlights 5 projects that range from $785,293 per unit to the $1,182,017 per unit. Costs for LIHTC projects continue to be “ridiculous.” Screen shot of chart by the Washington Post Taking the math further, that’s 468 units for a total of $438,262,683 or $936,458.72 per unit. To get a sense of the scale of this spending, consider that the average house in Washington D.C., according to Zillow, sells for $607,908, or $328,550.72 less than the average cost of the units created in these projects. Also consider that for the price of building 1 unit at the pricey Ontario Place project, one could buy two homes in the District of Columbia, priced at $591,008 each. Finally, in Adams Morgan where the Ontario Place project was…
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