Costco's bold new plan for the California housing crisis

Sfgate ^ | 6/24/2024 | farley Elliott

[from occupied ga]

Costco, the international bulk grocery chain known for its warehouse looks and difficult-to-beat deals, is hard at work on what could be considered its biggest new product launch in years: affordable housing.

...

but a whopping 800 residential units, including 184 set aside specifically for low-income tenants.

The redone site will not only encompass the store and 800 individual apartments, it will also include a fitness area, multi-use community space, multiple courtyards and landscaped paths, a rooftop pool, and other amenities like gardens. Oh, and lots of parking too, of course.

CONTINUED AT THE LINK - Diagrams,etc

[Alberta's Child]

You’re not totally wrong, but “low income” housing and Section 8 housing are not the same. Low-income housing — usually under state law — generally restricts the housing to occupants whose income meets some threshold tied to median income. It can be 80% of the median household income for individuals, 100% for couples, 150% for a family of four, etc.

Section 8 is a whole different story. These are housing units where the occupants are so limited and/or defective that the U.S. government pays the rent. It’s rare for Section 8 housing to be mixed in with market-rare housing — because the tenants are often comparable to zoo animals. A typical Section 8 scenario involves a multi-family house or an entire housing project where every occupant is getting Section 8 support.

[from occupied ga]

True dat, but Costco seems to be selective about hiring and tends to keep employees a lot longer than most retail operations. Probably do criminal background checks on them too. I'm reminded of the woman who posted a rant about not getting hired at T J Maxx. She had just about every visible Sq inch of her body covered in tattoos with a number of piercings thrown in. She thought that MAYBE she didn't get hired because of her tats. Gee you think maybe?

I've never seen a Costco employee look anything like that.

[from occupied ga]

I was assuming that low income wound include Section 8.

[FreedomPoster]

I used to live closer to a Costco that had bulgogi marinated beef. I do miss it, but like where I live overall MUCH better. Now in Trump country, not a Leftist suburb.

[Opinionated Blowhard]

This is not going to end well. There are a number of Wall Street hedge funds buying up housing to turn Americans into renters. Costco is just getting in on the same act. Its going to actually drive-up housing prices.

[HombreSecreto]

Two other factors.

Again, thievery from the back door. Even if not employees, they can target the delivery vehicles. See those stories (somewhat related) about gangs going after train cargo in LA?

The other is the location(s) of the impacted properties. If they are in sketchy areas, close the retail use of the property and convert to low income housing.

For those locations, you save on staff labor, cut pilferage to zero, get some guaranteed revenue, and you can get reimbursed for damages.

If this works, expect to see A LOT of this going on with abandoned shopping malls in CA.

[radmanptn]

Costco’s hard to beat deals can’t be all that great, if they have share holder value to throw at social engineering / community activism. I looked at their NASDAQ page, while they pay a dividend the dividend as a percentage of stock price is pathetic. Maybe they could work on that.

[from occupied ga]

You missed the $15/share dividend they paid in January. If you add that in you get a decent div yield.

[mikey_hates_everything]

Yeah, I was just referring to the Costcos around me, not the loser overeducated assholes.

[mikey_hates_everything]

And I grew up here before it got this way, that’s my excuse. But will soon become a WV resident.

[Alberta's Child]

That's understandable, but no landlord with half a brain would treat them the same way. A "low income" tenant would still have to show proof of employment, verify income, pass a credit check, etc. The landlord doesn't care about the Section 8 tenant because that tenant isn't the one paying the rent.

Some landlords love Section 8 tenants because the rent is guaranteed. But they can't mix Section 8 tenants with "normal" tenants because the entire building or neighborhood usually falls apart due to neglect and misuse.

[ShadowAce]

That was my first thought.

Idiocracy coming to life--faster than I expected

[PIF]

Where will the MJ/Meth/Heroin/Fentanyl concession be located? How much is set aside for the “homeless”?

[iluvschnitzle]

Depends on the management of the housing. The housing authority over in my county does not put up with Riff raff in the low-income housing it manages.

[lurk]

These plans seem fun.

Have they factored in maintenance, water and electric, and the removal of rubbish and poo?

[from occupied ga]

I was just going by what happens around my house in GA. I live in a suburban neighborhood with dogs, trees, and Harris supporters. Half a mile away is a very large series of apartment complexes that have all sorts I know they mix Section 8 in there because my wife used to work at the local school district, and she was able to tell from information that they had that there was Section 8 in the complex. Now there are a lot of separate buildings in there maybe some are dedicated to Section 8. That I don’t know

[metmom]

I agree.

Unless they are very careful about who they let in it’s going to be a disaster.

[cgbg]

“low income” housing and Section 8 housing are not the same.”

Technically new construction Section 8 housing does not exist—these days the housing subsidy goes with the person not the building.

After about ten years or so almost all housing built with “low income” schemes turns to trash—and then the politicians whine about the “affordable housing” crisis and build some more....

[unread]

The drug dealers (demoncrats) are salivating..

[from occupied ga]

Being a landlord today is one of the last businesses I would want to get into. Governments stack the deck against the property owner with eviction moratoriums, failure to prosecute squatters as criminals, and extra tax on rent (this falls under the Obama 3.8% additional investment tax, etc,