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Venice Update

News of Venice, CA and Marina del Rey CA

Should homeless housing cost 500K per unit?

Many Venetians have asked that question?  Is LA using the HHH money properly?

This article  answered many questions regarding funding and the efficacy of remodeling,  Paragraphs are repeated here verbatim and out of context just to provide general information.  Rushmore Cervantes, general manager of Housing and Community Investment Department, handles the HHH money.

… regarding funding

 For instance, the PATH Ventures project in East Hollywood will cost $53 million to build, but only $3.5 million of the total amount come from HHH funds.

There are a total of eight funding sources, and almost half the project’s financing comes from private investors seeking low income housing tax credits. Tax credits have been an indispensable part of the low income housing development mix since Congress passed the Tax Reform Act of 1986.

“I mean if we could just do this with two funding sources that would be great because we’d be able to get things built,” said Anderson. “We wouldn’t have to run around and secure multiple funding sources.”

Soft costs often involve finance and legal fees associated with housing projects. In the first three approved HHH projects, soft costs account for 29 percent of the total.

 

… remodeling as opposed to building new

 In downtown LA, a century-old King Edward Hotel has been converted into low-income and homeless housing by the AIDS Healthcare Foundation, which is becoming increasingly involved in local housing development.

It says its per-unit cost is one $70,000 a unit, a fraction of HHH projects.

Michael Weinstein, the director of the AIDS Healthcare Foundation, says the city hasn’t been creative enough when it comes to thinking about how to create affordable housing for the homeless. He especially likes the idea of renovating existing buildings to get housing projects open faster and at a lower cost.

One question still remains and that is if it is 500,000 per unit and it takes many years,  why not buy them each a house in areas throughout California where housing is cheaper?

 

 

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