We are making significant progress here.

I know it is EASY to find 2 bedroom apartments in reasonable locations for
under $700.  There are hundreds (likely thousands) of them available today
in Minneapolis.  Just scan the "for rent" ads in the Sunday paper tomorrow.
Is $700 "affordable?"  Near as I can tell, it depends on who you ask.

However, Steve Brandt really asked a broader question when he stated that
"[imperfect data] leaves open the possibility that the low-end market is
tighter than market levels, as advocates assert."  Ok, lets agree that if we
ignore costs, housing is readily available.  Therefore, if the only issue is
affordability, we don�t need to build MORE housing, we need to make existing
housing cost less or supplement low-income families.

Think of it this way.  When low-income families cannot afford food, our
government supplies them with food stamps.  Our government does not start
subsidizing the purchase of farms, ranches, food processing plants and food
distribution centers solely to create a duplicate supply chain of
�affordable food.�

In housing however, our leaders propose just such a solution.  They want to
subsidize builders to create housing that operate in a different financial
realm than market rate housing.  The end result is a few developers and
non-profits control the affordable housing market.  Not only does this limit
the options of families with low incomes, it is expensive to taxpayers.  In
2001, the Minneapolis Community Development Agency reported that the average
subsidy for one affordable housing unit was $158,828!

Housing �vouchers provide affordable units at a much lower price than new
production programs by relying on older, already existing housing units (the
kind of housing that nearly all households live in).�  Claimed Ron Feldmen,
Vice President of the Federal Reserve Bank of Minneapolis in his August 2002
paper on affordable housing.  Mr. Feldman later stated that with an annual
subsidy of only $2000 per household we could move most low-income families
from unaffordable to affordable housing using market rate housing.

Remember this:  If we provide "rent stamps" instead of subsidizing a few
non-profits, then ALL HOUSING IS AFFORDABLE.  The beauty, as clearly
outlined by Mr. Feldman is that it costs less too.

Bill Cullen.
Hopkins & Uptown.

P.S. references:  6-Mar-03 Southwest Journal "Affordable housing at $158,828
a pop " and Aug-2002, Federal Reserve Bank of Mpls "The Affordable Housing
Shortage: Considering the Problem, Causes and Solutions."

TEMPORARY REMINDER:
1. Don't feed the troll! Ignore obvious flame-bait.
2. If you don't like what's being discussed here, don't complain - change the subject 
(Mpls-specific, of course.)

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