L.A.’s Homeless Will be Housed in $600K Per Shipping Containers

If there a Metaphor in describing what’s taking place currently in L.A., it would be “the inmates have finally taken over the asylum.” In that the city of Los Angeles under Democratic Mayor Eric Garcetti and other city leaders have recently embarked on a new housing scheme for their homeless population, that will cost roughly $600,000 per residential unit, allow me to repeat that figure  $600,000 per residential unit.

Even more outrageous than the absurd cost, this so-called housing complex purposed will be built with prefabricated “SHIPPING CONTAINERS.”

YOU MIGHT LIKE
Learn more about RevenueStripe...

The containers will be arranged into towers, then connected by walkways to create a single, unified building topped with rooftop terraces and gardens. They have been specifically manufactured as modular, prefabricated homes because building codes prevent the developer from using recycled containers.

According to the architect, the design was chosen “as a way to reduce the cost and construction time.” However the figures suggest otherwise, in that the final breakdown thus far is about $600,000 per unit, that’s more than the median price of a condo in L.A. and three times the average cost of a home across 45 states in America, averaging about $280,000.

The 34 million dollar project dubbed “Isla de Los Angeles” includes more than fifty furnished one-bedroom apartments along with retail spaces, a park, and a shared public street for farmers’ markets and other community events.

Individuals will also have access to social services, like counseling, job training, and life skills workshops.

According to the Daily Wire “about 30%” of the funding (approximately $10.2 million) comes from a $1.2 billion bond measure known as Proposition HHH, which voters approved in November 2016.

A spokesperson for Clifford Beers Housing, the non-profit developer leading the Isla project told the Daily Wire that the facilities would also provide mental health care, drug and alcohol treatment.

Earlier this year, the Los Angeles Times reported that members of the citizen committee appointed to monitor the project became alarmed by the rising costs associated with the funding.

The Times noted, “Housing construction that hovered at $400,000 per unit before Proposition HHH is now routinely above $550,000 per unit – a rate that would exhaust Proposition HHH funds well short of the 10,000-unit goal.”

L.A. City Controller Ron Galperin released an audit last month suggested that the measure could exceed $600,000 apiece, partly due to“the high level of soft costs,” which “indicates that developers are spending large amounts on non-construction activities such as fees, consultants, and financing costs.”

Those additional costs could be around $12 million dollars.

J.F. Mailander, a retired banker who has been a vocal critic of Garcetti’s housing policies said: “It’s always very expensive to build anything from the ground up.”

Adding, “This is why we used to simply buy old buildings to house people – it was the cheapest way to go. Profits had already been made, and the buildings had already turned a few times. But this is the very engine that has been fueling L.A. politics. Any new building gets architects, developers, contractors, labor unions, lawyers, activists, PR people, charitable agencies involved, and all find a way to give back to the political sponsor.”

Low cost affordable housing in the form of government-sponsored city projects for low income families have always been a vital part of New York City. However in most instances those individuals must have some sort of income, this proposal by L.A. merely moves the homeless crisis indoors.

Housing the homeless in a $600,000 unit, rather then actually addressing the underlined causes of homelessness does little in changing the symptoms of drug addiction and mental illness, the leading causes of homelessness.

Moreover only 30% of the funding roughly $10.2 million dollars was referenced out of a projected $34 million dollar project. The obvious question “who will be funding the additional $23.8 million?

Let me guess, the L.A. tax payer

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright Stella Management 2018, all rights reserved