Affordable Housing

I recently addressed some remarks to the government of the City of Cambridge with hopes of making the world a better place. Today, I got a response from the Special Assistant to the Executive Director of the Cambridge Housing Authority saying, "Thank you for your thoughtful email."

Here is what I had originally written:

Representatives of the Cambridge Housing Authority,

First off, I would like to say that I think what you are doing for the community of Cambridge is a wonderful thing and I commend your efforts to make Cambridge an affordable city. I don't know if this message will fall into an e-mail void, but I very much wish for it to be considered by members of the board for future planning.

The basis for my idea is founded in a belief which is rooted in my personal experiences. Essentially, I argue that affordable housing benefits should be opened to individuals and families that are encumbered with high monthly payments for student loans. In this manner, the CHA would be encouraging higher education, which would lead to the benefits of a highly educated workforce (job creation, industrial innovation, and strong social ideology). With smart graduates in the area, it will be easier to find better teachers for the next generation and the trend will have an exponential effect.

It should be noted that recent graduates encumbered with high student loans have comparable economic statuses with low-income families. For example, an individual earning $60k/year and paying back $40k in loans (a figure that is only twice as much as I have seen reported to be national average) needs to pay back approximately $1k per month to have any hopes of repaying his or her loans within a reasonable 5-10 year period. This person does not receive any significant tax benefit to ease this burden, so their net income is effectively reduced by $12k + the taxes on $12k (which is between $3k and $4k). Thus, somebody making $60k with high student debt is effectively comparable to an individual who earns $45k/year (a figure that would qualify for low-income housing based on this chart => http://www.cambridge-housing.org/chaweb.nsf).

However, on a rudimentary level, tailoring housing for recent graduates is fundamentally different than for low-income families. Recent graduates are likely to desire the ability to live in an intellectually stimulating environment with their peers rather than the projects that are currently available for low-income families. Thus, it is my idea and proposal to establish a special type of housing alternatives for these individuals.

Furthermore, I would propose making these "academic projects" grand in size and scope to ensure that a revolving door of graduates can be offered luxurious accommodations at reasonable rents during the first five years after their graduation. My detailed plan is to develop large high-rise buildings in desirable locations with enough space for 300 units each (~30 stories with 10 units each). The attachment highlights areas that I think would be ideal for these types of projects with green (the yellow highlights sites that I believe are currently being developed as a 10 and a 24 unit building). The triangular plot near Kendal Square is an old (and seemingly abandoned, whenever I walk past it) Polaroid building that I believe MIT currently owns. The second plot has approximately 12 buildings that could conceivably be purchased under eminent domain for a value of approximately $10 Million. Of course, the benefits of building there (over-looking the Charles River) could entice a developer because of the astounding value of a views from a high-rise at that location. Both of these locations measure approximately 2 acres in space and would represent wonderful opportunities for retail shops and services on the first and second floors. Additionally, burying 2 or 3 levels of parking space at these sites (or burying one level, and using stories 3 and 4 as a car-elevator parking garage for people who don't need to take their cars out everyday) would be a boon. Also, there is a well-documented environmental benefit that has been associated with energy savings in high-rise buildings, so there will be a lot of good press for the "Greenness" of these projects.

I hope that you would propose a vote to consider what would be necessary to provide this type of alternative housing option to student loan encumbered citizens. I think a long term plan to build the first building by 2014 and the second by 2017 would add a significant value to Cambridge and help to ensure that our city remains one of the best places in the state (and country) to live.

Thank you for your time,
* signed *

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