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There's a difference between affordable housing and "affordable housing"(tm) qualifying for a LIHTC. Affordable housing is simply developing new housing that s

There's a difference between affordable housing and "affordable housing"(tm) qualifying for a LIHTC. Affordable housing is simply developing new housing that serves the market you intend to serve. It might be more humble, etc., to make it affordable for that market. Part of the equation is realizing that there are also poor people who simply don't have enough to pay the rent on any place at all that is built according to building codes. Developers can't solve that problem, even with some kind of tax credit bible and tax consultants.

paxys 5y ago
The problem is that the difference in market price of a house built to regular standards and one built to be "humble" isn't all that large. Most of the costs are fixed – land, permits, designs, materials and construction that are all up to code, utilities hookups, inspections, listing, sale process. So the distinction comes down to finishings and appliances, which are overall minor. So whenever you force a developer to build affordable housing by placing caps on price, they will always be doing so at a loss and making up for it by inflating all the other units, skewing the market further.
- georgeoliver 5y ago
  Homes in the US now are about 1000 sf bigger than they were 50 years ago. I would bet this is mostly market-driven to maximize profit, but it's also politically created by zoning and ordinances, with the added bonus of keeping poor people who might afford a smaller home or a portion of a duplex/triplex out of your neighborhood.
  - paxys 5y ago
    Maximizing profits would mean building more units on the same land. So, subdivide lots, allow multi-family construction, increase the number of floors. The same people who disallow this then turn around and demand affordable housing.
    - manholio 5y ago
      "Affordable housing" always means "affordable high value housing for well adjusted middle class families" in politico. Sure, the poor elderly, the homeless, and those with mental health and addiction challenges need a place to stay too, but it can't be here. We don't have people like that around these parts.
  - dr_dshiv 5y ago
    Seriously. Housing looks expensive per sq ft sq m in Europe, but houses are designed to be smaller and work.
lifeplusplus 5y ago
NYC affordable tm / connect housing is like must make less than 75k and pay 2.5k rent. If you make 75k you probably get to keep 48k and rent would be 25.5k, more than 50% of disposable income. Objectively worse off.

paxys 5y ago

The problem is that the difference in market price of a house built to regular standards and one built to be "humble" isn't all that large. Most of the costs are fixed – land, permits, designs, materials and construction that are all up to code, utilities hookups, inspections, listing, sale process. So the distinction comes down to finishings and appliances, which are overall minor. So whenever you force a developer to build affordable housing by placing caps on price, they will always be doing so at a loss and making up for it by inflating all the other units, skewing the market further.

georgeoliver 5y ago
Homes in the US now are about 1000 sf bigger than they were 50 years ago. I would bet this is mostly market-driven to maximize profit, but it's also politically created by zoning and ordinances, with the added bonus of keeping poor people who might afford a smaller home or a portion of a duplex/triplex out of your neighborhood.
- paxys 5y ago
  Maximizing profits would mean building more units on the same land. So, subdivide lots, allow multi-family construction, increase the number of floors. The same people who disallow this then turn around and demand affordable housing.
  - manholio 5y ago
    "Affordable housing" always means "affordable high value housing for well adjusted middle class families" in politico. Sure, the poor elderly, the homeless, and those with mental health and addiction challenges need a place to stay too, but it can't be here. We don't have people like that around these parts.
- dr_dshiv 5y ago
  Seriously. Housing looks expensive per sq ft sq m in Europe, but houses are designed to be smaller and work.

lifeplusplus 5y ago

NYC affordable tm / connect housing is like must make less than 75k and pay 2.5k rent. If you make 75k you probably get to keep 48k and rent would be 25.5k, more than 50% of disposable income. Objectively worse off.