New subsidized affordable housing units cost more than $600k each

San Jose’s upcoming Measure E puts no financial controls on how much the new subsidized “affordable” units funded by the measure will cost. A similar measure (HHH) in Los Angeles resulted in eye-popping price tags for taxpayers, with new studios costing more than $600k, each, much more than the cost of market-rate units. Victoria Taft of PJ Media surveys the damage.

“Last summer, USA Today reported that between the costs imposed by regulations and real estate prices and spiffs, such as fitness centers and homeless services, the costs for these homes are prohibitive:

"[The homeless] will receive keys to one of 72 new apartments,complete with a fitness center, in the heart of trendy Koreatown, built at a projected cost of $690,692 for each unit, according to the city controller's office. Two additional projects in the pre-approval phase are expected to top $700,000 per unit in total costs.

"This kind of cost is utterly unacceptable," Controller Ron Galperin said. "I believe we need a fundamental course correction."

“The median cost of housing in LA is $618,000, less than most of the units are costing taxpayers.”

Read the whole thing here.

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