Show me the incentive … and I show you the outcome When you eliminate “profits” and the Developer and GC can only make a % of project costs, turns out costs go 📈
Show me the incentive … and I show you the outcome When you eliminate “profits” and the Developer and GC can only make a % of project costs, turns out costs go 📈
@bobbyfijan The only other things we buy this way are health insurance and military equipment. And they're also expensive. Who would have thought?
@bobbyfijan I assume it's a LIHTC deal w/ that cost/unit. Everyone wants higher costs in those deals.
@bobbyfijan LIHTC development limits but doesnt eliminate developer profit. GC profit, overhead, and general conditions is capped at a total of 14%. EAH is not vertically integrated so its in their best interest to minimize cost. The costs aren't being artificially inflated.
@bobbyfijan I don't think that's actually it. My understanding is that it is due to having to cobble together 6 to 8 sources of funding, which require a prevailing wage plus all sorts of requirements that don't apply to market rate housing. For example, childcare, case management, free Wi-Fi
@bobbyfijan Now do Homelessness programs in places like LA