Affordable Housing in Columbus

Episode Transcript

Speaker 1 (00:07):
Greeting, salutations, and welcome my friends to the Monday edition
of The Power Hour. I'm Chuck Douglas. You know who
you are. We take it from there. We get one
hour together, which means I talk really fast and you
must listen even faster. My number eight two one nine
eight eighty six eight two one WTV and or eight
hundred to six' ten wt. Fee and SO i guess

(00:29):
the word affordable is. SUBJECTIVE i. SPEAK i speak of
a story featured today on many of the media outlets
here In Central, Ohio columbus affordable housing project calls raise. Questions,

(00:51):
Now i've, always AND i, guess especially because of my
my real estate work and you, know being a residential
realtor for all these, Years i've always questioned the term
affordable housing because it, always, always always has seemed less
than affordable to. Me and depending upon you, know what
space and time we're occupying during the. Conversation i've seen

(01:14):
many organizations that you, know basically they just move around
government money to create. Projects there was ONE i recall
one time, AGO i might Beloved. Westside they wanted to
and they're still, around but they changed their. Name but
what they, did what they did was to come in
and build basically. Doubles they called them, condominiums but they were.

(01:37):
Doubles and here's the. Deal what you did was you
would sign up for a lease on these condominiums that
was for fifteen. Years, yes that's. Right then at the
end of fifteen years you could buy the. Condominiums they
were for people with little or bad. Credit and the

(02:00):
problem was when it came time to. BUY i, said,
okay well, then BECAUSE i was, working you, know a
on a community board back, then and they brought this
before us for, approval AND i, said, okay so at
the end of fifteen, years you get into this, thing
you make your, payments you get to buy. It how
much will it be after you've paid essentially rent for

(02:22):
fifteen years on the, Kind, well we don't know that
until we get. There how h. MUH i argued against,
it and of course The city Of, columbus being the
city Of, columbus passed. It, ANYWAY i pointed out to,
them at that, time you could not even do what
was called an open ended car. Lease have you ever
leased a cars? Act?

Speaker 2 (02:42):
NO i almost, did But i'm GLAD i.

Speaker 1 (02:44):
DIDN'T i, mean it's, great, great payments low payments as
long as you stay within your miles and take care
of the. Vehicle but at the end of the, lease
you have what's called a. Buyout so after leasing it
for twenty four months or thirty six months or, whatever
you know how much much if you want to buy this,
car what it's going to cost you is what they

(03:05):
call a residual value on the.

Speaker 3 (03:08):
CAR i never wanted to get one BECAUSE i always
a lease BECAUSE i thought it just felt like a
really extravagant way of renting a.

Speaker 2 (03:15):
Car, well the same, thing.

Speaker 1 (03:17):
But it's kind OF i, mean here's the deal, Though
if it has a high residual, value as do Most honda's.
Toyotas if the residual value is, high that means you're
going to have to finance a pretty big chunk if
you decide to buy it at the end of the least.
Term if the residual value is, high it also means

(03:42):
that your monthly payments are going to be lower because
the vehicle is going to be worth more at the
end of the. LEASE a low residual value much more
affordable at the end of the, lease should you choose to,
buy also means your payments are likely higher because you're
going to need to eat up a big bunch of

(04:03):
the cost of that car during the course of the.
Lease so it depends on what you want to. Do
and if you're always going to be somebody who has
a car, Payment i'm not one of those. PEOPLE i
like to buy, stuff cheap stuff cash and just drive
it into the ground and get something. Else i'm not
a not a car payment. Guy but if you're always

(04:24):
going to you know yourself well enough to Do i'm
always going to want a newer, Car i'm always going
to have a car. Payment leasing may be the way to.
Go but the point of that whole thing is they
are closed end. Leases whether it's a high residual value
or a low residual, value at the beginning of the,
lease the inception of the, lease you know what it's

(04:46):
going to cost you at the end of the lease
to buy. It these, condominiums on the other, hand and
again government money shuffled around through organizations and so forth
that all themselves housing. ORGANIZATIONS i think the kind of,
minims If i'm not, mistaken were renting at that, time

(05:07):
and it's been twenty five years. Ago for around eight
hundred dollars a. Month but at the end of fifteen
years of paying that it was open. Ended they couldn't
tell you what it was going to cost you to
buy after your long term fifteen year. Lease AND i,
thought that's. Ridiculous fifteen years is. Ridiculous first of, all

(05:31):
you can't get any other. Contract you can't do an
employment contract over seven. Years you start getting into in
indentured servants at that. Point, SO i, mean you, know
fifteen years was, crazy but fifteen years and not being
able to know what it was going to cost you
to buy it at the end of that fifteen years
was even. Crazier, nonetheless the city Of columbus approved the

(05:52):
project now with all of that. Upfront according to THE
wsyx website, Here columbus met Or Politan Housing authority E
cmaj has embarked on a twenty nine million dollar project
to provide affordable housing in Downtown. Columbus the, development located

(06:13):
on the site of the Former United way. Headquarters listen to,
this will feature eighty two. Apartments of those eighty two,
apartments there will be some, studios there will be some three.
Bedrooms they, say primarily serving middle and low income. Families
that's what you would expect from affordable. Housing despite the

(06:37):
project's noble, intentions the story, says the cost per unit
has raised eyebrows at you're, ready here's affordable housing for
low income. People, here you're. Ready three hundred and fifty three,
thousand six hundred and fifty eight dollars per. Unit the
price significantly exceeds the average cost of building a apartment In,

(07:00):
ohio which typically ranges from sixty five thousand to eighty
six thousand.

Speaker 2 (07:04):
Dollars and what's the rent going to?

Speaker 1 (07:07):
Be national estimates for apartment construction range from eighty thousand
to two hundred eighty. Thousand these are like purchase. DEPARTMENTS
i guess maybe that's what they're paying for construction of each.

Speaker 3 (07:24):
Apartment, well it also would depend if there's any regulations
on where they can, build what they can, build what
materials to, use if it's some sort of environmental. THING i,
MEAN i don't know about this particular, insisence but that
could raise the price.

Speaker 1 (07:38):
Too this here's a. Quote this is an L lihtc,
community meaning it's got low income tax credits in. It
oh isn't that? Wonderful and that raises the cost of. Construction,
again tax, credits your money raises the cost of construction

(08:00):
of these kinds of. Projects this is why it might
be a little higher than. Normal, again let me quote
that three hundred and fifty three, thousand six hundred and
fifty eight dollars per unit average cost In ohio typically
sixty five thousand to eighty six, thousand and he says

(08:20):
whyatt might might be a little bit higher than. Normal
additional factors contributing to the higher costs include compliance with
green energy standards and specific building finishes that are required
by THE lihtc. Program there's some green energy, standards we

(08:42):
have to, do certain kinds of finishes and the way
we build the building that the project requires us to.
Do obviously we comply with that because of the to
get THE htc equity in order to build these, projects
and without the equity from our partnership with SO, mpaj
this would not be able to actually be. Built so,

(09:06):
again government, money government, standards shuffling stuff. Around average costs
to build similar apartments sixty five to eighty six thousand.
Dollars we're going to spend three hundred and fifty three,
thousand six hundred and fifty eight. Dollars this is affordable.

Speaker 2 (09:20):
HOUSING i can't get over the.

Speaker 3 (09:22):
Guys it might that's why prices might be a little.
Higher that's like me, Saying, chuck you're a little taller than.

Speaker 1 (09:30):
Just a tad big a little. Bit, yeah, yeah this
is just this is. Sad but, again it's your tax
dollars at. Work all these, organizations all those INITIALS i
was just. Reading trust, me they're living as nonprofits and
tax exempt organizations and all that kind of. Stuff this is.
Stupid the money that we could just you, know pump
pump it into the citizens. Pockets let us go out

(09:54):
and build our own. Homes three hundred and fifty three
thousand dollars Per, yearnit give to me that kind of.
Grant see what kind of HOUSE i could? BUILD i,
mean you could literally build a six, hundred seven hundred
thousand dollars house if you had three hundred and fifty
three thousand dollars in government, money nonprofit, money whatever coming at.
You couldn't.

Speaker 2 (10:13):
You, YEAH i can figure that out.

Speaker 1 (10:17):
Myself that would be too, difficult just absolutely. Distressing but
this is the kind of smoking mirrors that continues to
pass as affordable. Housing AND i don't know what If
i'm assuming these will all have to be, purchased it
doesn't make. Sense by the, way there's going to be

(10:38):
the eighty two. APARTMENTS i mentioned that, earlier there are
seventy parking. Spaces maybe that's a green energy. Incentive we're
assuming twelve of the twelve of the people will will
take a. BUS i don't, know, Man, no this doesn't

(11:01):
make any sense at. All what we have to meet
these standards in these conditions and use these finishes and
these green. Things but we're gonna build something with eighty
two units and seventy parking. Spaces why would you even
build two or three auto all be studios if you're
not even gonna have parking one parking space per.

Speaker 3 (11:24):
Unit wouldn't you even try to LIKE i don't condone.
Line wouldn't you try to fake it and just put
like twelve motorcycle spots at the end there that are
really small and be, like we have eighty two parking.

Speaker 1 (11:36):
Spots this is where your rental scooter, goes big bike. Rack,
YEAH i just seventy spaces allocated for the eighty two.
Apartments remaining parking will be available on a paid hourly,
basis which means parking meters on the. Street nothing like
coming home to your new apartment in Downtown columbus with you,

(11:56):
know armful of groceries because you can only you, know
there's you gotta buy your grocery a little at a.
Time you can't buy for a week and a half
two weeks LIKE i. Do you had to buy them
for a little. Time you got to park at a
meter and walk through the snow and the rain and
the ice and pass the excuse, me and to get
to your apartment with your your grocery store bounty hourly.

(12:18):
Parking this Is i'm, sorry this is a, stupid absolutely.

Speaker 3 (12:23):
Stupid it's even the little things that are bothering me,
about like if you, park you have a lot of
groceries to carry, in and then you got to get
them all, out and you got to pay the, meter
and then'd like you forget to lock the doors because
it's downstairs public. Parkiing so now you're afraid people are
gonna steal your. Son now you gotta go back outside
and lock Your it's a whole.

Speaker 2 (12:41):
Thing this is a whole.

Speaker 1 (12:42):
THING i would not be surprised if another requirement of
residency there is probably to install like the city parking,
apps so that you can just push a button and
have your credit card dinged at the parking, meter because
they're going to that. Now instead of putting money into a,
meter you scan A qr code or.

Speaker 3 (13:02):
Whatever and, yeah the last few TIMES i parked, DOWNTOWN
i DOWNLOAD i had downloaded the, app and that's HOW i,
paid not to pay for.

Speaker 1 (13:10):
It oh, MAN i just WHEN i think about the
housing situation in Central ohio and the fact that we
desperately need more, housing but we need. Houses we need,
houses people to live in the, houses people to build the,
houses and everybody put all their money On intel And
microsoft And amazon And google and so. Forth which one
is it that that said they're stopping or slowing their

(13:34):
uh their data center up there in The New albany.
Area was That? Intel, No intel was the chips so
it must Be. Microsoft, yeah it Was. Microsoft AND i
don't know what that. MEANS i have no idea other
housing coming to The Central ohio. Area this is going
to be a traffic nightmare right overund the corner from
the radio station here On Trabue. Road if you guys

(13:57):
are familiar with where what is It fairway Or. Fairweathers
it's a little strip there next to the railroad tracks
On Trabue, road between between where Hag avenue empties out
and where McKinley avenue. Empty THERE'S u and they're going
to the APPARENTLY apparentlyld two and eighty Nine i'm, sorry

(14:17):
two hundred and fifty apartments on that, site plus a
restaurant and, UH i guess some commercial will be involved there,
too but traffic. Coming you, Know trabue is only two.
Lanes what's it gonna if it Abuts Old Dublin. Road
that's only two. Lanes plus they need to smooth out

(14:37):
that whole railroad track situation because you're you, know if
you're over twenty miles an, hour you're doing a dukes
of hazard going through. There but on top of what
we've already got over, there we're looking at another two
hundred and fifty apartments on that. Space that's. Crazy That's
i'm all for, Development i'm all for. Housing we desperately need.

(14:58):
Housing but, Man i'm, sorry this just doesn't make sense to.
Me they're putting all the wrong stuff in all the wrong.
Places as far AS i can, see