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----- Original Message -----
From: BARBARA L MURRAY
Sent: Saturday, May 31, 2003 7:16 PM Vanessa,
I don't reply to folks often on this but I just
wanted to let you know the difference between owning a subsidized (affordable,
section -8) building vs. subsidies that go to non-profits to "develop or re-hab"
sec-8. I have managed sec.-8 for 14 years in Whittier. The
tenants receive the subsidy and pay 30 % of their income for rent,
the Gov't pays 70%. The rent charged in most subsidized bldgs. is at or
below market rate, even though the management costs are higher due to the market
they serve. There is much more "hands on" tenant issues to deal with in
sec. 8 because of the things that low income folks have to deal with.
Things such as single parenthood, very low income, little or no family
support, and too many other issues that I won't go into here. When you
manage a "market rate" building, the tenants are usually gone for 8 hrs. out of
24, the kids are in daycare off site and it is usually just collecting rent and
cleaning that you need to deal with. Not always, but generally.
Vikki's point with subsidies to non-profits for affordable housing is that when
a non-profit develops something, for some reason, it costs many thousands of
dollars more than the private market can do the same work for.
Many, not all non-profits are an investment vehicle for wealthy investors.
The tenants receive a subsidy but the developer uses someone elses money to get
the project going. Many times, unlike the private market, no one is
watching the bottom line because IT IS NOT THEIR
MONEY that they are spending. They spend yours and my money,
essentially we pay twice for the same service.
That's all, have a good weekend.
Barbara Murray
Riverside Park
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