Fake news. Like $10k/per unit will make a difference. Actually most cities fees cost builders more than $100k/unit…Sacramento will still be charging 90% of those fees. In reality bureaucrats and politicians don’t give a crap about affordable housing.
When it costs $300k per unit why would a builder build affordable hosting when he can build market rate housing and make a much larger profit? And only have to $10k more
If cities are serious about affordable housing they will have to waive all fees and contribute free land plus federal grants. Good luck
Hard costs are still at least $150k per 1000sf unit
That means it will have to rent for 1500/m even with no fees and free land
Every dollar helps no?
Not when it just political fantasy. These bureaucrats need to take basic math. They actually need to look at spread sheets on projects like I do all the time.
Poor people will have to settle for existing houses
Market rate housing can be more affordable it height limits and zoning is relaxed. That will cut land costs way more than $10k per unit.
Like I have said many times, my 50 year old Sacramento units are worth $80k, but to build them new would cost $300k. Now my units rent for a $1000/m. The new ones go for $2500. Affordable new housing is an urban myth
In story, this was cited as the impact fee that in theory would be waived. How is that not significant? Come on, the Fab 7x7 could learn a thing or two…
It is a game of semantics . They are talking about school, parks and road impact fees. They are not talking about water, sewer and utilities hookup fees. Or planning and building fees or permits. Let alone design and consulting fees that are only needed because the city requires them.
A 100 unit project will cost $30m . A savings of $1m won’t attract a builder that can make a lot more money on market rate housing.
Again, is this not better than nothing? Why is a cow town like Sacramento leading the pack? I don’t see the Fab 7x7 instituting anything close to this.
Sac MSA is now 2.5m. Similar to BA population 50 years ago. Now longer a cow town. Vacaville is still literally a cowtown.
But even Vacaville has 100k population
As far as SF that 100 unit project would cost $50m. The $1m savings means nothing compared to the restrictions of BMR units on the bottom line.
Affordable new housing is bull shit