Mr. Luce makes a great case for bringing the pre 1986 tax codes back.  The
non-profits are more expensive.  They do not get the bang for the buck that
the private sector would get.  They do create a lot of administrative jobs
that I just don't see in the private sector.  Check out PPL and CCHT.  How
much staff per unit VS some of the larger operators.  I won't embarrass the
non-profits by comparing them to the small landlord operators staff per
units comparison.


Craig Miller
Former Fultonite
[EMAIL PROTECTED]

> 1.  Nonprofits generallly build housing for larger families with a higher
percentage of three and four bedroom units.  Private developers generally
build smaller-- i.e. one to two bedroom units.  A per unit cost ignores this
difference (and Robert Anderson noticeably excludes the 4-5 bedroom units of
CVI from comparison, with these units making up 6 of the 20 units).
>
> 2.  Nonprofits generally include service facilities such as daycare or
counseling--costs that should not be used in a per unit comparison unless
the private developer is also providing such services.
>
> 3.  Nonprofits usually have to assemble financing from a number of
sources, increasing the cost of staff and development, whereas private
developers have one or two sources of investment.
>
> 4.  Because of nonprofit funding sources, nonprofit developers must abide
by the Davis-Bacon federal regulations that require payment of prevailing
wages during construction.  Private for-profit developers escape these
costs.
>
> 5.  Nonprofits include developer fees up front.  For-profit developers
often make most of the profit after development (cash flow, sales,
management fees) and these fees are typically passed on to tenants or buyers
(obviously impacting affordability to the end user).
>
> 6.  Nonprofit development at high-density and inner city locations is
generally more expensive than for-profit development at lower-density sites
at the surburban edge.  That is, what's being compared?
>
> 7.  Nonprofit developers typically design with an eye toward longevity,
increasing initial costs.  For-profit developers who sell the development
after five years are more interested in short-term profitable investments,
lowering initial costs.
>
> 8.  Nonprofit developers must overcome neighborhood stereotypes about low
or moderate income neighbors and must spend more to create attractive
developments to dispel the misconceptions.  CVI is a prime example.
>
> So, taking these things into account, can I take a look at the for-profit
orange and peel away its cost?  At the same time, feel free to slice up the
nonprofit apple as well and, in keeping with the List Manager's rules, let's
compare CVI or other Minneapolis projects on a true contextual comparison
basis.
>
> Gregory Luce
> N. Phillips (work)
>
>
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