In reviewing the January 1994 "Amazon Family Housing Condition Survey" performed by Endex Engineering Inc., I find that the conclusions I reach from the data in the report is considerably different from the conclusions presented in the study itself.

Adjustment of some replacement costs, proper crediting the economic and financial value of the existing structural investment in place, use of available and more durable replacement components, and inclusion of the debt service costs for constructing new units creates a remarkably different comparison between extending the life of existing buildings and their replacement with new ones.

The "construction" lifecycle cost of the "New" option would be approximately 62% more than the "Maintenance" option.

The full project cost of the "New" option would be approximately 3.5 times greater than that of the "Maintain" option. The "Maintain" option
would be approximately 71% less expensive than the "New" option.

This is a difference of over $111,000/unit over the 50 year period.
This represents a total project saving of over $27 million compared to the
"New" option.

With a 60% larger size of the proposed replacement
units factored in, the disparity in costs would be even greater (+30% $194,634/unit) resulting in $38,639,000 total project cost savings.

Including both larger unit size and taxpayer bond subsidy results in
an additional cost over the "Maintenance" Option of $208,000 per unit, or a total difference in project cost for 244 units of $50,782,000. Such units would cost 4.7 times as much as the "extended-life" units in the "Maint" Option.