03-22-2021, 09:43 PM
(03-22-2021, 08:05 PM)danbrotherston Wrote: I have to agree with her issues, but I'm also concerned about some of the numbers, 80% of median rents doesn't sound very affordable in this city. Except that the claimed median rents are unbelievably low. I've never seen a one bedroom unit for under $900, even 10 years ago when I was searching. Anyone have any idea how they get to a median (as in, average, not minimum or lowest) rent for a one bedroom unit of like $853?!
Further, if we figure what the subsidy will cost the developer to offer, its nowhere NEAR 3 million dollars and could range anything from under 500k to 200k short of 3MM if we consider luxury apartment pricing.
If rent control applies after the 25-year period (it does not now, but I think there is a high likelihood that it will by that time), the transition to market pricing will not be sudden, as rent control currently allows annual increases of only about 2% unless the landlord does major renovations etc. So, I think this would narrow the gap.
However, I agree that a long-term lease of the land (at a nominal price, as long as the building provides affordable housing) might work better. There might need to be an option for the developer to be able to buy at some point in the future, though.