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That’s one of the great ironies of Invest South/West, a massive economic development initiative launched four years ago by former Chicago Mayor Lori Lightfoot. Construction costs for the program’s affordable housing projects in some of the city’s poorest neighborhoods exceed $600,000 and even $700,000 per unit, far higher than the $450,000 to $500,000 per unit for the ritziest high-rises under construction in and around downtown.
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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I was wondering if/when the lapdog Chicago press would bring this to light
Invest Ex/Cess
This isn’t anything new– it is just that the numbers are worse than ever. As far back as 2008-9, private developers could build at half the cost of the City, CHA, Ill Housing Dev Authority and their posse of favored builders. Small private developers– with no political clout can still get very nice livable 2 BDR units in decent neighborhoods done for under $350k. Who really gets hurt? Taxpayers obviously. But also all those thousands of folks waiting for a decent unit who know that half as many units are built as could be without the Chicago waste factor. It… Read more »
If they stop using gold plated doorknobs/diamond sprinkles in the floor/hickory and teak cabinets/walk in showers with dual shower heads in every bedroom/crystal chandeliers in the foyer/Sub Zero/Meile/Thermador appliances they could save a few bucks. Plus if someone found the toilets that the gov threw out in the alley that would save some more cash. https://www.ajmadison.com/package/MIRERADWRH3059/?msclkid=e5bc1aa3eb4b1aea6efc7e3f606c657e&sku=K2811SF&sku=HR11353GAGGRCTS&sku=PFD101U&sku=DA6698WSS
https://www.thermador.com/us/products-list/ranges/60-ranges/PRD606WESG#/Togglebox=accessories/Togglebox=manuals/Togglebox=accessoriesOthers/
Whodathunkit?
Spot on Mark. $700K homes for the community even beats my shack in Bowmanville.
Chicago’s Next Corruption Scandal — The Waste, Fraud, And Insider Deals — That Have Blown Up The Construction Costs For Chicago’s ‘Affordable’ Housing Projects