Project adds up to trouble

The Pearl on Adams (“Renovators turn Helena into the Pearl on Adams,” Oct. 16) low-income housing project should be more accurately called the “Pork Barrel On Adams.” Let’s look at the numbers.

A total of $8,385,712 to provide 35 apartments. That’s $239,592 per apartment. Each apartment at maximum rent will generate $99,360 during the 15 years of the loan for a total shortfall of $4,908,112, not including interest, maintenance, repairs, administration and taxes.

So where will the rest of the money come from? Easy, your back pocket, in the form of subsidy payments. So what is the actual rent on these units, including subsidies? This is just a guess, but for this project to break even it has to be $1,400 to $1,500 per month, per unit.

I have no problem with low-income housing except this. Developers, both public and private, have no reason to hold down costs when these can be used to justify higher subsidies. Then, in turn, these high subsidies drive up the cost of all housing, starting with lower cost open-market housing. Ultimately, the taxpayer pays to make housing more expensive for everyone.

Joe Polowski

Deer Park