One Man's Plan to Expand Cheap Housing and Make Money Doing it. (Converting tax money to profit)
But remember we used to have public tax paid housing and didn't have to provide a profit for an already wealthy individual.
Undoubtedly these are same tribe of men who spent the poverty program funds distributed as "block grants," for their own "urban renewal" tax money for profit only schemes during the seventies and eighties.
While many of the earlier public housing funds were used to create segregated areas in the largest cities, there were for a time in the late fifties and sixties very low cost housing in even small rural communities in nearly every county in this nation.
Those have mostly vanished since the voucher for public housing and nothing has replaced the quantity of housing once provided but the spending has increased to provide profits for the usual few and no housing for the many.
On a recent afternoon in Prince Georges County, Maryland, a bleak economic trend met a tantalizing investment thesis.
Inside the community center at the Regency Pointe Apartments, a complex of 599 units set in low-slung buildings about 20 minutes from Washington, nurses from a nearby medical clinic were screening residents for cholesterol and high blood pressure. Just outside, a Zumba instructor was leading two dozen neighborhood children in an exercise class. A uniformed Sheriffs Department officer looked on, chatting with residents and tracking police radio reports that a suspect wielding an AR-15 assault rifle was wandering nearby streets.
It's part of an effort by Turner Impact Capital, which acquired the property in June, to make money for investors while keeping rents stable for low-income residents. At Regency Pointe, the typical renter earns less than 80 percent of the area median income, and the average two-bedroom costs less than $1,200 a month.
Since launching the Santa Monica (Calif.) investment firm last year, Bobby Turner has used a two-pronged appeal as he seeks to raise $300 million to sink into affordable housing, from investors that include the University of Michigan endowment fund and Citi Community Capital, which invests in community development for Citigroup.
The pitch: The fund will help fill a pressing need to preserve affordable apartments in places such as Prince Georges County, where four out of 10 renters spend more than 35 percent of their income on rent. At the same time, it will target returns of 10 percent to 12 percent.