"Costs are driven by the byzantine rules of the federal tax credit system that require builders to assemble a "capital stack" of funders, each with sets of fees and requirements. On top of that comes ever more rigorous government standards for accessibility, sustainability and design. Developers and their architects win points from public agencies awarding the projects by striving for net zero carbon emissions by using materials such as solar panels, triple-pane windows and upgraded insulation."If a Martian dropped down from the sky and looked at how America develops affordable housing, they would think we're nuts," says Hipolito "Paul" Roldan, CEO of the nonprofit Hispanic Housing Development Corp. "They would be right."
Traumatizing robberies and violent crime continue to go up in Chicago this year, hitting a six-year high compared to the same time last year. It’s crime in neighborhoods perceived as safe, sometimes taking place in broad daylight, that’s driving the increased fear among Chicagoans and suburbanites.
Ted was on The Chicago Way with John Kass and Jeff Carlin to discuss the proposed $5 billion lakefront stadium project proposed by the Chicago Bears & Mayor Brandon Johnson, why Chicago is struggling compared to other metro areas across the country, why the city might or might not go the way of Detroit, and more.
Some Illinois lawmakers continue to deny that covid aid and other federal stimulus bailed the state out of its fiscal mess. But a look at past and projected revenues from COGFA shows just how much the bailouts blew out the state’s revenues. And now that they’re over, how much harder it will be for Illinois revenues to grow.
Election integrity – both real and perceived – is essential to government’s legitimacy and stability. Illinois, like the rest of the nation, better fix its problems now.
Ted joined Dan and Amy to talk about Chicago’s latest bond offering, why Chicago’s dismal home value growth is due to poor policies, the next $70 million to be spent on migrants, the 9% salary hikes demanded by the CTU, and why Illinois lawmakers voting to stop Chicago’s selective enrollment schools from being closed is hypocritical.
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I wonder how many of the commenters here have read the article, which is not now paywalled. It’s mainly about the complexity of funding subsidized housing, requiring many lawyers and consultants, and expensive finishes which the intended occupants might choose to forego in exchange for lower rent.
btw, the term “affordable” was proclaimed so we didn’t have to say “subsidized.” Which implies that market rate housing is unaffordable, which it obviously isn’t if somebody has rented it.
Nothing to see here. For a while you could move to Detroit and buy abandoned homes for one dollar.
Old Joe, if someone bought one of those homes in Detroit for one dollar, were they being ripped off?
Yes, but you’d have to live in Detroit.
Alternate headline:
The High Cost of Electing Democrats
Just a friendly reminder. NEVER vote for a Democrat.
Chicago is a shining example of putting Democrats in charge for 75 years. Why doesn’t the national media ever talk about it?
Here’s some affordable homes. LOL
https://www.thespruce.com/super-affordable-tiny-homes-that-will-inspire-3017220
Would you want to live in a tiny home ?
Why not?
It is just plain bad economics. Just take the cost to connect utilities to a tiny home , water, sewer , electricity these will cost more to connect than the cost of the building, Build for the long term. or get a Winnebago.
Okay, you make a good point. Thanks!
The other issue with affordable housing is that affordable housing is not to modern standards. My grandparents purchased a home in the Chicago suburbs during the 1950’s on a laborer’s wage. It was 1,000 sq ft, on an unfinished crawl space (no basement), a small combined kitchen/dining room with a formica countertop, a cheapie range, a small living room, three small bedrooms off to the side, and one small bathroom, and a one car detached garage. It was a tiny stick frame with cheapie siding, little if any insulation, and zero modern amenities like a dishwasher, internet hard wiring, no… Read more »
The article implies that $200,000 to $300,000 apartments are “affordable.” In which case a $250,000 house would also be affordable.
Illegal immigrants were estimated to be 7% of the city’s residents as of 2014. Since then, the city has doubled down on its sanctuary policies, and encouraged massive illegal immigration, nearly all of whom arrive here looking for ‘affordable’ and ‘low cost’ housing. At this point, the laws of supply and demand kicks in, and rents/housing prices skyrocket. It’s completely asinine that not one politician in Chicago has linked the lack of unaffordable housing to the massive waves of illegal immigrants seeking said “affordable housing”.
Debtsor, cause and effect is not usually a progs strong suit.
It is a supply and demand problem, the demand will always exceed supply. so a never ending political problem.
Exactly, the demand to live anywhere in north america will always exceed the supply. For example, our neighbor to the north, Canada has also been allowing in legal immigrants during the past three years at a pace that, for it’s smaller size, exceeds the US’s legal immigration rate, even with illegals. They’ve let in nearly 500k immigrants a year for the last three years. As a result, during the past three years, Canadian housing prices have gone haywire, and are completely insane, parabolic almost, with the countrywide average housing price, after converting to US dollars, now being $585,000. The average… Read more »
It is a national disgrace. These units cost three times what they should. And every one of the companies involved in these deals is on someone’s “approved” list either at CHA, IHDA or HUD. And don’t forget, one of the biggest disasters in US low income housing history is the CHA Scattered Site Program, run into the ground by Valerie Jarrett when she was Chairman of the CHA. Hundreds of millions over budget and years behind schedule with no accountability.
so,,,at a astounding $800,000 a unit cost of affordable housing a $100 mil Real-estate Transfer Tax will create a minuscule 125 new apartment units at best after all the mountains of bureaucrats, minority set-asides, special interests, etc, etc pick the $100 mil clean…RIDICULOUS!! also, CTU, SEIU, etc will be looking to get their cut to $$pay$$ for homeless services at astronomical cost as well
Yes, government policies and government / unions in general are a racket in Illinois. Everyone gets their cut, which makes substantial affordable housing efforts unaffordable for the taxpayer. For all the talk, the number of units they deliver is lost in the rounding.