September 24, 2008

Fees Follow-up

Assume a CDC built the same duplex:
  • the 18,000 of fees would be waived
  • sidewalks would be paid
  • they would most likely get at least 100,000 in grants
  • if they could still not sell the property, they would get even more grants

Then when the project was done, the occupants of the said building would have to be low to moderate income. Just what we need, more low to moderate income property owners.

Remember in the event these new low to moderate property owners default during the "affordability" period and a non-low to moderate income person becomes the owner, the City is on the hook for the HOME funds.

Bottom line, we are actually driving private developers out of the City of Worcester while encouraging the development of more low to mod income housing, that we do not need, while tying the City of Worcester into the risk if the "affordabilty" period is violated.

When will will learn that the recommendations of RKG in the 100,000 study from 5 years ago was correct? In the end, we wonder why there is not more private development monies invested in Worcester?

3 comments:

Anonymous said...

Home funds? Is this what Manny used to collect from the red sox when tagging the Monster seats w/a 4 bagger?

I am going to start a CDC that subsidizes groceries, afterall food is even more imp. than roof over your head.

We need a law firm CDC so a few of these city coucillors will see what it's liike to compete with gov't money While the private law firm has to bill for $250 per hour, the indifgent come come to my CDC Law Firm (Jahn Law) and pay me only $50 per hour and the gub'mint will subsidize the balance and I'll even specilaize in landlord-tenant-real estate law & just to rub it in I'll sue the real estate CDC's for stealing tenants from other private taxpaying 3 decker land lords.

Bill Randell said...

Jahn:

Some may find this hard to believe, but there is a role for the CDC's in the City of Worcester.

Right now, however, the scales are completely out of whack. The purpose of a CDC is to spur spin-off not spurn it.

Bill

Bill Randell said...

By the way RKG, the consultant we paid monies to about 5 years ago, predicted this and told the City of Worcester to stop relying on the CDC's so much and that it would discourage private investments. They could not have been more right.