In this month’s Master Builder Magazine, I’ve articulated our argument for getting more efficient in the way resources are being used to produce non-profit affordable housing in Washington State. Bringing up this point, that low-income units produced by non-profit organizations are very expensive, makes many people unhappy. They often say, “Your math is wrong,” or, “It’s not a fair comparison.” Some have even claimed that the 200 units built by Capitol Hill Housing (CHIP) and El Centro de La Raza really aren’t almost $500,000 per unit, even though dividing the total cost of the units by the total cost of $92 million is $460,000 per unit. On the CHIP project, I have found sources and uses for the $47 million it took to produce 88 units. And, according to Walsh Construction, the total development was 150,000 square feet; that means that 12th Avenue Arts cost about $313 per square foot. Again, this makes people angry, but I’ve seen zero in the way of refuting that the project cost $47 million. It did. Its that simple. And from what I hear from people who build housing in the private sector, that costs is exorbitant.

I think rather than getting mad at me for pointing out the cost, non-profit leaders need to stop demanding more cash until they start advocation along side us to lower the regulatory burdens that add costs to all housing in our city and state. Doing that, would mean more affordable market rate housing and more units with subsidies for households in need.