This is absolute insanity. As part of a large development, the builders had to set aside 20 units to be sold in a lottery. Instead of paying $500,000 to $1.3 million, buyers will be able to move in for $85,000 to $230,000.
In my opinion, this does nothing to address the shortage of affordable housing. In fact, by forcing developers to set aside a certain percentage of units, it increases the sales price of the other units in the project. Plus, buyers are screwed if and when they sell, because they won’t be able to sell their homes at the market rate.
From Inman News:
It’s raining affordable houses
Well, not really. 4,000 hopeful buyers vying for a home, but only 20 new residences: That’s the sad math equation thousands went to witness at SBC Park in rainy San Francisco this morning where a lottery-style drawing is being conducted for the chance to buy a place to live at "The Beacon" at an affordable price. Lottery winners will pay from $85,000 to $233,000 for the 20 Beacon homes that would ordinarily sell for $500,000 to $1.3 million. The Beacon is a luxury residential, retail and office development located across the street from SBC Park, home of the San Francisco Giants. The San Francisco Redevelopment Agency said it was the highest turnout of applicants in the program’s history.