When last we blogged on the wretched topic of the Kelo controversy (New London Update — The Perils of Pauline, December 11, 2007) nothing was going on on the site of the taking, the redeveloper had duly ‘fessed up that it lacked financing for the project, and that it would need an extension of time past its contractual deadline to obtain it. The city agreed to an extension of time until May 29, 2008.
Now we learn from the March 14, 2008, issue of The Day (the New London newspaper) that the redeveloper has just asked the Federal Housing Authority to finance it to the tune of $11.5 million to fund construction of an apartment project. According to the The Day story, the redeveloper’s HUD applicatioon envisions “an upscale rental property that will be positioned to compete at the top of the market.”
So what it boils down to is that the feds are forever yammering about the shortage of affordable housing and the urgent need to preserve and construct more of it. But it turns out that they are in the business of subsidizing people who kick out inhabitants of lower middle-class housing, then destroy it and replace it with “top of the market” stuff. Yessiree, Bob — those deserving folks at “the top of the market” surely need a federal subsidy, don’t they?
In the meantime, Connecticut has blown well over $70 million on the New London redevelopment project with nothing to show for it. Your tax money at work.