Affordable housing in California now routinely tops $1 million per apartment to build
At least seven low-income housing developments funded by the state have eclipsed more than $1 million per apartment to build in the last two years.
Here is the most important part of the article:
A significant part of the cost comes from developers paying attorneys and consultants to navigate state and local bureaucracies to secure financing.
Most large states have one agency that hands out affordable housing dollars. California has five — with varying requirements for what gets funded.
Luckily there is a bill proposed to fix this.
This year, Grayson’s legislation to centralize state affordable housing funding under the governor failed in a fiscal committee. He’s introduced a new version, Assembly Bill 2305, which passed the Assembly last month and is awaiting a Senate committee hearing.
Call your State Senator and tell them to support AB 2305.
That’s why nobody wants to build them. “Yay let’s do 5x the work for 1/3 of the pay.”
In comparison with private sector development, low-income housing is often saddled with more stringent environmental and labor standards. Affordable housing projects also frequently face high parking requirements, lengthy local approval processes and a byzantine bureaucracy to secure financing.
“We haven’t seen any relief on any of those [cost] drivers,” said Elizabeth Kneebone, research director for UC Berkeley’s Terner Center for Housing Innovation, which published one of the reports. “We’ve only seen more challenges piling on top of each other. There’s been nothing to bend the curve. It just rises further upward.”
That's why public housing and "affordable housing" is not the solution to the housing crisis.
Let developers build. Let them build however they think the market wants housing. Let them build as tall as they want, as dense as they want, as much or as little parking as they want, where they want. The end.
good thing a regular person like me has $1M chilling in my pocket. very handy!
Unsurprising. Government "affordable" units were $650-700k to build when I did them many years ago. At the time, comparable private development apartments were about $450k a unit, and those were standard apartment quality units.
Worth a read: An LA-based architect posts and comments on previous housing policy bills, discusses the question "Why is it impossible to build a non-luxury apartment building?"
Paging /u/clipstep !
In glendale, the local gov issues bonds for private investments group to purchase high end apartments on the pressumption of turning them into low income affordable apartment. But so far it’s been a huge scam. (CalCHA + Catalyst)
Every CA politician's top priority should be repealing CEQA. It has become the single biggest obstacle to housing affordability here.
Does this include the cost of land?
The article focused on how affordable government run developments are different from private ones, but that seems like burying the lead to me. The fact is both are incredibly expensive because of the cast of land (and anti-development policies like prop-13, zoning, and misapplied environmental regulations).