By William Jordan
“Any new development needs investors, and we cannot get that if the reward doesn’t justify the risk,” says Bozzuto. “Affordable housing, by its very nature, when it’s built, the return is de minimis. What you’re seeing is, capital flows to where it works. So what’s left is public subsidy.” - Toby Bozzuto, President The Bozzuto Group
The hubris of Toby Bozzuto combined with the specious and ahistorical account of recent housing dynamics by Lydia DePillis would make this recent article in the Washington Post (http://www.washingtonpost.com/news/storyline/wp/2014/08/19/why-its-so-hard-to-find-a-cheap-apartment-in-washington-d-c/) laughable except we often hear the same line spouted by DC policy makers. Mr Bozzuto's, "let them eat cake, 1980's greed is good" sentiments ignores a decade of company's like Bozzuto's feeding off of affordability and other public subsidies originally designed to support the development of Healthy Mixed Income DC Neighbors instead being used to support higher luxury apartment rents. Contrary to popular myth, DC's abandonment of its commitment to Mixed Income Neighborhoods slowed growth in population, jobs and healthy neighborhoods.