CNBNews

In light of there being so many houses for sale why would the city add to the stock now? Three additional houses added to the current stock of unsold houses will drive prices down...economics 101. In light of the Meadowbrook Mews debacle, why would the city continue to be a developer? 

On Sept 1, we will have incurred costs of over $527k in interest (assuming 3%) and over $329k in foregone property tax revenue. Gloucester City will need to recover over $17k on each one of the 50 Meadowbrook Mews units to just break even. This estimate excludes future property tax breaks and other ‘miscellaneous’ expenses that may have been incurred, routine maintenance (landscape care) that would be covered by HOA, plus an additional $1million loan to the builder. 

Chatham Square was purchased May of 2008 and not one unit sold yet! Why would the city add more low income housing? According to Gloucester City News, as of June 2009, the City has a ‘credit’ of 90 shares which more than covers its obligations for COAH. So if my understanding is correct, GC could build up to 360 new market rate housing units without having to build one new low income unit to meet COAH obligations. And why single family detached houses set back from the sidewalk in a neighborhood of row houses at the sidewalk? 

To read the City’s press release along with further comments on this topic click here. 

This week’s poll question (polling widget at top of page, right col.)

The national housing market slump continues yet the City of Gloucester City plans to build 3 new homes for low income residents...Is this a

GOOD IDEA?

BAD IDEA?

UNDECIDED?

Last week’s poll question. Will the Philadelphia Eagles have a 

Winning season- 44 Yes

Loosing Season-39 No

Go eight and eight- 22

Total votes cast -105