Up Sucker Creek

Up Sucker Creek
Photo Courtesy of the Lake Oswego Library

Tuesday, November 15, 2016

LA's idealistic affordable housing measure

Here is one example of the unintended, but predictible, consequences of ideology dominating logic, economics, a sense of fair play, human psychology and motivation.

Why would any investor, builder, developer, landlord, or property owner want to get involved with government schemes that will destroy their incomes? Why do the proponents of housing price control measures think it is OK to limit someone else's income, but not their own?  If Person A thinks limiting Person B's income and profit will make housing more affordable, Why don't they volunteer their own incomes for the cause?   (All 64% of them.)

Because it is easier to put the responsibility on somebody else - a group of businesses that cannot fight the overwhelming tide of public sentiment that wants to see something done, but wants someone else to do it.  

In the case of housing, it is always the housing suppliers that the public wants to bear the burden for high costs, even though they are the solution, and not the cause of the problem.  I fear that a lot of misguided and economically-challenged people have no clue about how things work in the real world.  Just because they want something to be true, and no matter how good it sounds, there will always be a reality that rarely agrees.

All the idealistic, utopian planning and wanting cannot make the world to spin backwards.  

L.A. developers grapple with affordable-housing measure passed by a wide margin

Los Angeles Times, November 10, 2016. By Andrew Knouri

Amid a Los Angeles building boom, voters this week overwhelmingly approved new labor and affordable-housing requirements for developers, who have warned the rules could be costly and crimp construction.
  Measure JJJ, which passed with nearly 64% of the vote, requires developers to pay higher wages and build below-market rate units if they get exemptions from key planning rules — a common occurrence in Los Angeles, where the city's zoning is considered outdated.

The measure was pitched by advocates as a way to add more affordable housing in an already expensive city where many new apartment and condo projects are aimed at the luxury end of the market.

“This is pretty devastating,” he (Al Leibovic) said. “It really throws all of our plans to construct an additional 700 units in the city of L.A. into question.”

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