Saturday, September 21, 2024

Hidden Tax for Public Housing

 The State, namely the Taxpayers, subsidize public housing water and sewer. See NJ and town. Now consider a typical NJ town, say 5,000 homes. The water costs are about $30 per month plus sewer is $70 per month for a total of $100 per month per HH.

 Now assume low income housing is mandated, which it is and say 1,000 units mandated. Thus the subsidy is $1,200 per HH time 1,000 HH or $1.2 million. Now the 5,000 non subsidized will cost then each $240 per year added for the subsidy.

 BUT, there is a demand for water and sewer processing. If the water is from underground sources, there may be inadequate supply. This capital investments must be added on top of this. The same holds for sewer since the plant capacity must be expanded by more than 20%, a significant capital cost.

 This can easily result in a 35% to 50% “tax” on existing homeowners to support “low income” housing just for these two utilities. Then add on schools etc.

 Just a thought.