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The $5M, 30 unit building to be built for the homeless is just around the corner at Morrill's corner in Portland, (internet, http://www.pressherald.com/2014/11/24/housing-for-homeless-planned-near-morrills-corner/) . It sure sounds like one heck of a plan and what a plan it shall be. This perspective build by Avesta Housing will cause you to think, "Will 30 units be enough?" We all know that these numbers are a start to getting more of those who need it most, off the streets and into a warm place they can call home. It does not sound like an issue at all, it is almost a win-win situation, is it not? Let me break down the information for a moment. What I failed to mention is that, it is contingent upon a $3.8M hand out by the state or other sources of monetary funds before the build is to begin and that the occupants of this new "lease" on life pays 30% of their income for rent.
30% of the renters income is great but great for whom? Avesta Housing is still receiving the entire amount that each unit is to be rented out for no matter what! In Portland, a one bedroom unit can range from the low $900 to the upwards of $1600 plus a month, (internet, http://www.apartmentpicks.com/ap/results). Let us use the median rent amount of $1250 based off most units available for rent, assuming that heat, hot water, and all utilities are not included. This is a big chunk of change for anyone. Perhaps the sales pitch is the 30% but again, Maine tax payers will need to sum up the remaining balance each month. Okay, I will put out there that I am more than willing to put up my share but not to these numbers! Here is why! Have you calculated the cost of each unit for an individual? That is $5,000,000 divided by 30 units and that equates to a mere $166,666.66 per unit. Ill let you take that in for a moment...
Is it fair for you or anyone to say NO to this project? Rightfully so, anyone can and should be applaud by these numbers. We should not only stop this idea of creating a home for the homeless that will populate a 30 unit residence that appears to be a housing project but rather, make light of the situation by giving more thought and idea of creating more homes for the same amount. $166K plus is a lot of money and with these cost, you yourself can purchase a home for the same amount that could house 3-4 people.
What am I getting at? It is simple. The price we pay as a whole for $5M can actually house 100 homeless residence in the Greater Portland area. Wait, how did I come up with 100 as a unit when initially, Avesta housing said only 30 units? Well, having a degree in business has helped me understand how "business" works in terms of making a profit and turning a dollar. The less you produce, the more people will want and the more money you can make in the long-run! I will do my best to explain this equation of equality using basic math and my carpentry background. Have you heard of this new age and modern way of living based on a tiny foot-print of living space? People have many names for it but you may recognize titles like "tiny homes" or "shipping container homes?" The concept may appear new but this has been utilized by the military since 2004 when I served in Iraq during Operation Iraqi Freedom II.
These homes can be on wheels but for the sake of argumentative sake. We will build these structures on a foundation with only a slab but with frost walls seeing that we are in Maine! These homes can be built for $20K while adding in another $20K to cover extra insulation, solar for both heating and cooling and that frost wall we spoke about. Heck, we will add an extra $10K in expense for the build because we are in Maine. The total cost to build these homes has now totaled $50,000 for one unit. If we multiple this cost by 10 for 10 units or 10 homeless residence off the street. We have summed up a value of a half million dollars. Shall we continue? Let us take that $500,000 cost and multiple again by 10 for a total of 100 units or 100 homeless residence off the streets with a final cost of $5,000,000. This progression in forward thinking has generated over 333% in increased living by reducing homelessness in Portland! I understand the cost of septic, land and the earth works and that is why I added the additional $10K of expenses to be shared by all 100 units.
In conclusion, Avesta housing is not giving us their best game face or best housing model for the people of Maine, let alone the homeless residence. The best name for Avesta housing practice of such projects should be called, "Totality of the bottom of the pyramid" where fortune is found at the poverty level of living! Please continue to follow and "Totality of the bottom of the pyramid" in another series of blogs later on with an explanation to this perspective. Please keep this in mind, "is Avesta housing really our friend (non-profit)?
