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Group Discovers to Build Housing for Homeless Affordably You Need to Skip Government Money

AP Photo/Ben Margot

The world today sure seems like it lacks common sense.

We see it all around us. 

Some people born male believe that when they reach a certain age of attainment, they can declare to the world that those of us who are sane must accept that they identify as a female, a tree, or an alien from a far-off world. Those of us who have been around for a while, at least with common sense intact and willing to speak out, shake our heads and wonder what the hell is going on.

Yet, we occasionally see a person or a group of people grappling with said common sense, even if it is not as dramatic as the examples I listed above. 

I found this story Monday morning about a group trying to solve a California problem that requires a lot of money. Yet they decided to go the private route and not allow themselves to get wrapped up in gobs of federal and state money, along with the numerous strings tied to that money, to avoid delay in solving that problem.

This was a great way to start off the week.

Primarily because this story is based in Gavin Newsom's California.

The story shows that even in the bluest of blue states, common sense can prevail if you look hard enough for it.

State and local governments in California have committed tens of billions of dollars to build more affordable housing. A new complex for some of the neediest low-income people doesn’t use any of it.

By forgoing government assistance and the many regulations and requirements that come with it, SDS Capital Group said the 49-unit apartment building it is financing in South Los Angeles will cost about $291,000 a unit to build.

The roughly 4,500 apartments for low-income people that have been built with funding from a $1.2 billion bond measure L.A. voters approved in 2016 have cost an average of $600,000 each.

Across California, efforts to address the homelessness crisis by building more affordable housing with government money have been plagued by sky-high costs. A recent report commissioned by the city of San Jose found affordable-housing projects that received tax credits cost an average of around $939,000 a unit to build there last year.

SDS, an investment firm, is financing construction of its L.A. building, scheduled to open in June, with a $190 million fund it raised to build an estimated 2,000 units for formerly homeless people in the city with mental-health and other medical needs. It is one of several such efforts venturing into an affordable-housing market that for decades has been dominated by developers and nonprofits that cobble together public funding and typically move at a snail’s pace.

“We believe there’s a different way than using government money, which really becomes slow and arduous and increases cost,” said Deborah La Franchi, chief executive of SDS.

Government, by its very nature, is inefficient.

Of course, you have those people who claim that every roadblock put up by every low-level alphabet soup agency employee you have to go through to get the stamp of approval is only to ensure safety. The filthy little secret, though, is that they are also doing it to provide their own job security, to make sure that they always have something to do before sending it up the ladder to get final approval. 

They do not care how long it takes.

When the government pays the bills, you must follow their rules and abide by the tortoise-like pace to approve things. It takes months and sometimes years to get approval for stuff unless you are in a state where the governor wants to put a boot up people's rears to get things done for those it is intended to help.

Just like in Florida when Gov. Ron DeSantis (R) waived rules after a Hurricane.

Gov. Ron DeSantis has given us a firm directive to bring all resources to the table for the millions of Floridians impacted by this disaster,” Griffin said in a release. “Within the framework provided by law, this emergency order assures Floridians have access to licensed contractors now able to deploy from across the state and put their professional skills to work.”

While the order is aimed at relaxing requirements, contractors are still required to obtain licensure in Florida before contracting for work, the release shows.

In Newsom's California, what do you think the opportunity will be for Democrats in the state to roll back their influence for an unnecessary regulation that raises cost and time to completion for an important project like building shelters? 

Newsom was shown to be an inflexible tyrant during COVID-19. How do you think he controls taxpayer money on his pet projects daily? 

Once again, from the article linked above, take a look at the cost differential for units.

Private money skipping burdensome regulation: $291,000 a unit to build 

The government funding with overbearing regulation: $600,000 each.

Who do you think is best being served amongst the homeless population in California?

A government led by Newsom where thousands are on the street and buildings will take millions of tax dollars and add months or years to the amount of time to be built?

How about letting the private sector skip the strings attached that Gavin and his eggheads will yank on at any time they see fit because the tax-paying public is footing some part of the bill?

We all know the answer if you have common sense; once again, that is one thing we are terribly short of these days.

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