$3 Mil. D.M. boondoggle?

Recently, the D.M. City Council approved $3 million in federal flood disaster relief funding subsidy for the $3.9 million Franklin Field Senior Apartments project.  Since there was no flooding in the area, I assume we must just want  more taxpayer subsidized housing.  In this case, the owners risk $0.9 million and taxpayers give away $3 million.  This will build 30 units at $129,000 each. “Of the 30 units, 66% will be designated for households under 80% of median income and will charge approximately $580 for a one bedroom apartment.”  After 10 years of compliance with the subsidized housing regulations, the $3 million loan will be forgiven.  After that, I presume they can charge whatever rent  they want. The owners will have a $3.9 million dollar property at a cost of only $0.9 million.  I understand the good intentions of making low cost housing available to needy seniors, but I disagree that taxpayers should be forced  to pay for this kind of thing.  This is something that should be handled locally.  If there is a real need,  and if people want to contribute to this kind of project, then private charity should be able to add whatever support is needed.

Here is a link to the City of DM approval:

http://www.dmgov.org/Government/CityCouncil/Communications/2012/12-504.pdf

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One thought on “$3 Mil. D.M. boondoggle?

  1. I agree and made the same point to several city council members; That using federal disaster relief funds may be legal for this use but morally wrong. For this project they also sold “park” land to the developer. Added in is that the site is 175′ above the Des Moines River flood level. Thanks for the blog!

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