Developers Break Ground For $7M Development For Homeless Vets

Like it is great that instead of just talking about a problem someone is actually trying to help solve it.

I see all of these vacant structures and think the potential they have to house people of all economic, special needs, etc. statuses.

This development will help 26 people. Section 8 vouchers will be used to assist residents.

Reminded of the old saying: "Better to light a candle, than to curse the darkness."

http://www.crainsdetroit.com/article/20170928/news/640686/developers-break-ground-on-7-million-development-for-homeless-veterans#utm_medium=email&utm_source=cdb-afternoon&utm_campaign=cdb-afternoon-20170928

Fantastic. Even sweeter that it will be fixing up one of my favorite buildings along that stretch.

$7,000,000 divided by 26 = $269,000 per person?????????

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Originally Posted by Hermod

$7,000,000 divided by 26 = $269,000 per person?????????

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Yep. Isn't that the 'going rate' to refurbish an apt. building???

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Originally Posted by emu steve

Yep. Isn't that the 'going rate' to refurbish an apt. building???

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It's "only" about $358 per square foot. :D

So $270 k per to house a homeless person? WOW,.. just WOW!

I operated 2 bedroom apartments in Scottsdale Arizona,.. and they went for $75,000 each.

Also,.. the City is giving them $1.3 million in "Home Funds",.. AND we're subsidizing the rent with Section-8 ?

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Originally Posted by Bigdd

So $270 k per to house a homeless person? WOW,.. just WOW!

I operated 2 bedroom apartments in Scottsdale Arizona,.. and they went for $75,000 each.

Also,.. the City is giving them $1.3 million in "Home Funds",.. AND we're subsidizing the rent with Section-8 ?

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A homeless VETERAN. What's your problem? Oh, I forgot - they're homeless because they want to be, right?

Let's spin this thread in another direction.

Doesn't this thread beg the question about the financial feasiblity of rehabbing all of these small apartment buildings?

It sounds great, esp. for a worthwhile group of tenants, e.g., homeless vets, but is it cost effective?

If it was cost effective wouldn't many, many of these buildings be put back into use?

That said, I do feel that some government subsidy to help solve a social problem is a good thing. Having homeless people on the street be they vets, seniors, etc. is not a good thing. In that respect it is NOT simply a commercial transaction i.e., is it a good financial deal in terms of cost to rehab and revenue/expenses to run those small apartment buildings.

I believe the VA has homeless programs. It would be nice if they could kick in some money to fund these initiatives.

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Originally Posted by Bigdd

So $270 k per to house a homeless person? WOW,.. just WOW!

I operated 2 bedroom apartments in Scottsdale Arizona,.. and they went for $75,000 each.

Also,.. the City is giving them $1.3 million in "Home Funds",.. AND we're subsidizing the rent with Section-8 ?

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You can bet the Vets aren't going to be the only ones not homeless. Where is the oversight committee?

As happy as I am to see a great building redeveloped for a great cause, I too am concerned about the finances. It seems like this large sum of money could go to fix more units in a larger building. Now if it specifically had to be this building at this price, then it is what it is.

I am an active duty Soldier and veteran so I always support a developments like this. I just question if that money could be spread over more units to help more veterans.

Good point. There are plenty of Vets in need [[and non-Vets, too) and plenty of buildings which could be put back into service so the question is how to get the most housing for the least cost per unit.

This is where the city of Detroit [[and all cities) can help by getting behind efforts to increase the supply of affordable housing for those most in need.

I posted about this before. One of the huge, I think, success stories in helping those most in need.

It is from the ecumenical organization, SOME, in D.C.

They are spending 90M, yes, a lot of money but look what they are doing:

http://capitalcampaign.some.org/about/

Housing for 30 families. Housing for 172 homeless or low income adults. Comprehensive medical and dental care. Job training. Staff offices.

This project will provide comprehensive services for say 250+ people and cost 90M.

Not cheap, even compared to the cost of the building of this thread, but is a project which will really make a big, big difference to the lives of 250+ people.

If would be nice if Detroit, now that it is back on its feet financially, to say work with philanthropic organizations and build something like this with the city putting up say 50% [[over say 5 years) and organizations the rest.

I sort of wish you scrutinized the Ilitch tax subsidies the same way Steve...

The location of the structure may have something to do with its' selection. It is located across from a school, a block away from a pharmacy and grocery store, and it is located on a stretch of Woodward where there are many churches which may or may not provide some services for those who may live here.

I don't want to label this a half-way house by any means, but it does strike me as the type of place that may see some regular turnover with residents as people get back on their feet. If you look at it that way it isn't $7 million for 26 people, but $7 million for a place that can provide stability and get many people back on their feet. I would much rather my hard earned tax dollars go to a place like this then to subsidize millionaires and billionaires downtown.

I suggest those concerned about the finacial cost read the related articles about the organization and the sources of some of the financing.

Corporate donations and chartible foundations are involved. We can't be paralyzed in fear of spending every dollar or the consequences of that inaction will be severe.

I myself believe smaller is better and more manageable not only in that it is easier to get the ball rolling and learn more about workable solutions but more effective and affordable than large bureaucratic institutions that require large capital at inception and for long term budgets.

I pass this place all the time and wondered if it was up for rehab.

7 million sounds like a lot but the building was open for a long time and is probably going to need most of the interior rebuilt. I imagine it's also losing units due to administrative space or accommodating individuals with special needs which will run the costs up. Plus the cost of complying with federal funding rules and hands in the pot...

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Originally Posted by southen

I sort of wish you scrutinized the Ilitch tax subsidies the same way Steve...

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I thought we put this baby to bed in another thread.

Bill Shea reported in Crains that Olympia is paying 11.5M per year [[for 30 years, with extensions) for the 250M DDDA "gave them".

I have the print copy and can find the URL.

Southen, you may be shocked to find that of the 862M bucks for the arena that 600M was from Ilitches/Olympia and 250 from DDDA but 11.5M/annual payments sounds more like a 30 year mtge than a 'gift.'

I read elsewhere that Olympia is paying 13M/year [[believe that was Bill Shea as well) so maybe DDDA and Olympia added an addendum to the agreement to handle the Pistons' expense for changes to LCA.

If so, in 30 years Olympia will pay almost 400M. Assuming they stay in LCA another 10 or 20 years, one can do the math: 40 [[years) x 13M [[per annum) = 500M+.

I really believe the city of Detroit did very, very well... They get [[DDDA owns it, even though it is Olympia's money) an arena at almost no cost to the city.

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Originally Posted by ABetterDetroit

I suggest those concerned about the finacial cost read the related articles about the organization and the sources of some of the financing.

Corporate donations and chartible foundations are involved. We can't be paralyzed in fear of spending every dollar or the consequences of that inaction will be severe.

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In my opinion this makes the apparently exorbitant rehab costs even more concerning. My question is why are the costs so high? By square footage the rehab costs alone appear to exceed the out right purchase price of many of the most expensive residential properties in the city.

Has anyone had any dealings with Cinnaire or Central City Integrated Health Inc? Who is the general contractor on this project? I hate be be a cynic, but a "ground breaking" picture with a Mayor of Detroit always makes me nervous.

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Originally Posted by Johnnny5

In my opinion this makes the apparently exorbitant rehab costs even more concerning. My question is why are the costs so high? By square footage the rehab costs alone appear to exceed the out right purchase price of many of the most expensive residential properties in the city.

Has anyone had any dealings with Cinnaire or Central City Integrated Health Inc? Who is the general contractor on this project? I hate be be a cynic, but a "ground breaking" picture with a Mayor of Detroit always makes me nervous.

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Trust issues with 'all things Detroit' has been demonstrated to be unsolvable on this forum numerous times in the past.

All I can say is at least the state isn't showing up with a big pile of money with a edict of "first quit paying the fees to the auditors". That has proven to not to work out well either fairly recently.

This article does not describe the project in detail, so its likely that the project includes more than just building out 26 units for the building. Depending on the funds used, it could also include components that are not mentioned, such as administrative space, ancillary buildings, or even some services.

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Originally Posted by ct_alum

A homeless VETERAN. What's your problem? Oh, I forgot - they're homeless because they want to be, right?

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Are veterans somehow 4x as expensive to house as homeless non-veterans?

If not [[and they're not),.. spending 4x as much as necessary on this building means a lot of other vets will REMAIN homeless doesn't it? [[Presuming there isn't UNLIMITED dollars available for housing hoimeless vets)

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Originally Posted by emu steve

If so, in 30 years Olympia will pay almost 400M. Assuming they stay in LCA another 10 or 20 years, one can do the math: 40 [[years) x 13M [[per annum) = 500M+.

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That's great news, Steve! So, in 30 years, I can expect that squad car I called to show up. Meanwhile, Go Team!

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Originally Posted by 1953

This article does not describe the project in detail, so its likely that the project includes more than just building out 26 units for the building. Depending on the funds used, it could also include components that are not mentioned, such as administrative space, ancillary buildings, or even some services.

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I agree. You can bet the majority of that cost will be "administrative".

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Originally Posted by Honky Tonk

That's great news, Steve! So, in 30 years, I can expect that squad car I called to show up. Meanwhile, Go Team!

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Don't PM me in 30 years expecting a reply... :rolleyes:

Really people are whining about the cost of housing homeless vets? The per unit cost are not remotely out of line. For comparison a upcoming market rate project in Midtown is 380k per unit no doubt due higher finishes,etc.

http://www.crainsdetroit.com/article...ct-to-bring-84

I'm just glad to see the Saint Rita being saved. It's a handsome building, and another blighted structure gets a new life. Love the terra cotta.