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Originally Posted by octothorp
that's 24 million over the first fifty years of the building's life.
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The problem is that most building contractors want to get paid once the job is done, and not wait 50 years for payment.
It's always been the up front costs.
If the building costs $10M to build (that may be out to lunch- I don't know) then at 4.5% interest and a 30 year amortization that would make payments around $50K per month. So then you are up to $500 per month per unit just in building costs. Add in property tax, costs of running the building, etc and you are suddenly no longer in the "low cost" area.
I suppose you could subsidize, but that isn't always a good idea. Shawnski is in this situation as a short term measure; and he actually has a good reason for his situation. If you allow people to always get hand outs; then what is the point in them working? (from their perspective)