"Weingart opened a 19-story, 278-unit tower in Skid Row last year. The project cost $167.7 million, or more than $600,000 per unit. The tower was funded with $32 million of the city's homeless housing bond, a $1.8 million land loan from the City of Los Angeles, $48.7 million in deferrable loans from the California Department of Housing and Community Development, $56.9 million in tax credit equity and $85.3 million in tax-exempt bonds."
"This summer, Weingart opened a second tower that cost $171 million for 298 units. That project, developed by Related Companies, is estimated to be in line to generate $534 million in federal voucher revenue over its lifespan. A third tower containing 104 units is now in the planning phase with a $865,656-per-unit price tag, or $90 million total; at that figure, it costs more to build one of these units than to pay the median price for an entire home in the state."
"Taxpayers are being forced to foot the bill for over $800,000 per unit for homeless housing, Susan Shelley, vice president of communications for the Howard Jarvis Taxpayers Association, told The Center Square. There should be an audit to determine if this is genuinely the best option to provide housing or if this is just making a lot of people rich off the taxpayers' dime."
Three skyscrapers planned in downtown Los Angeles to house people experiencing homelessness could cost federal taxpayers more than $1 billion. Weingart Center Association is the nonprofit developer and plans to use federal Section 8 Housing vouchers over a 55-year period to repay public loans and fund private developer fees and investor returns. Recent projects include a 278-unit Skid Row tower costing $167.7 million and a 298-unit tower costing $171 million, with extensive public financing and significant developer fees. A planned 104-unit tower shows per-unit costs near $865,656. Critics call for an audit of cost-effectiveness.
Read at therealdeal.com
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