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Apartments for the homeless in Los Angeles could cost more than a half-million dollars each to build

As Twitchy reported earlier, California Gov. Gavin Newsom lectured President Trump on electric cars, just as PG&E was shutting down power to 500,000 customers. But that’s pretty much business as usual in California.

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USA Today reported Tuesday that apartments for the homeless in Los Angeles which received more than a billion dollars in funding three years ago have yet to be built, and when they are built, each one will cost about as much as a private family home.

Wow, that’s not reminiscent at all of the state’s high-speed rail fiasco.

USA Today reports:

Nearly three years after city voters approved a $1.2 billion construction program over 10 years, the city has yet to see the first building completed. Average per-apartment costs have zoomed more than $100,000 past prior predictions, the study by city Controller Ron Galperin finds.

At an average cost of $531,373 per unit — with many apartments costing more than $600,000 each — building costs of many of the homeless units will exceed the median sale price of a market-rate condominium. In the city of Los Angeles, the median price for a condo is $546,000, and a single-family home in Los Angeles County has a median price of $627,690, the study states.

Prices rose dramatically because of higher-than-expected costs for items other than actual construction, such as consultants and financing. Those items comprise up to 40% of the cost of a project, the study found. By contrast, land acquisition costs averaged only 11% of the total costs.

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Higher-than-expected costs, huh?

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Meanwhile, those who aren’t homeless and are employed are paying $1,400 to $2,400 a month to live in adult dormitories with shared kitchens and bathrooms or renting bunk beds for $1,200 a month in something called a PodShare.


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