Dear Dick:

A CCDC MEMORANDUM dated June 6, 2002 to the Center City Development Corporation Board  discusses a 24-unit project at 9th & F Street.  It states under PROJECT BENEFITS:
"Provides permanent low-income housing available to Centre City homeless and formerly
homeless persons."  The cost: $247,088 per unit.

At a cost of $247,000 per apartment, according to CoStarCOMPS, these mostly studios and
one-bedroom units are more expensive than all but 53 of the 19,000 apartments that were sold in San Diego over the past 12 months. More expensive than 99% of non-subsidized apartments.

My letter to you dated April 7, 2003 concerning the high price of non-profit housing being built at 39th & Polk Streets, is not an isolated case.  These projects funded or partially funded by government are so expensive that only the poor can afford to live in them.

I'm told that the cost of $247,000 is at least $100,000 more for each apartment than the cost of privately built, "for profit" apartments.  Is this true?

Given the current budget constraints can we afford to help fund Taj Mahals for the homeless?

What accounts for the mind boggling price per apartment?

Is it because union labor is required on city-sponsored projects?

Is it because prevailing wages are required on city projects?

Is it due to some state and federal funding that Davis-Bacon wages are mandated?

If not, who gets the extra $100,000 per apartment?  All costs are income to someone!

Out of curiosity, are non-profit organizations barred from making campaign contributions?

I would very much appreciate it if your office could provide answers to the above questions.

Best regards,
Fred
Fred Schnaubelt
Enclosure: CCDC MEMORANDUM dated June 6, 2002

Fred Schnaubelt
2728 Adams Avenue
San Diego, California 92116
(619) 280-2082

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