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Cara Letofsky wrties that "affordable housing
doesn't cash flow without public subsidy"
I have done over 300 small development
projects over the last 32 years with no public subsidy and I have never come
close to losing money on any single project! Over 1/2 of the projects were
in the tougher areas of Minneapolis and would qualify as affordable
housing. Of the properties I own now, 90% would qualify as affordable
housing and presently provide a healthy cash flow which I
continue to reinvest into the properties.
I have continued to do small projects and I know of
many other small developers that also are continuing to do this. Since
most of our projects are rehab projects, the inventory has dried up - thanks to
the MCDA grabbing all of them and stockpiling their inventory or tearing them
down. They have refused and continue to refuse any of us qualified
developers to get our hands on any of these small projects.
To be honest, I can not speak to the exact costs
for large development projects from personal experience, but $175,000 to
$225,000 per unit seems ridiculously high to me.
Steve Meldahl
3rd ward
(work)
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