By Amy Skewes-Cox

As we all know, teachers are underpaid, especially given their value to upcoming generations. With that comes the associated problem of educators not being able to afford Marin housing prices.

The Village at Oak Hill, to be located on state land near the San Quentin State Rehabilitation Center, has been proposed to help solve this crisis. The rents at Oak Hill would be set at 30% to 50% below market rates, allowing teachers and essential school personnel to avoid long commutes from outside Marin County.

When I first learned of this project, I was shocked at the number of units and immediately worried about the traffic levels I’d have to endure on Sir Francis Drake Boulevard. Now I know how selfish that was. My occasional travel delays would pale in comparison to long commutes endured by teachers living in Sonoma County or the East Bay.

A projected budget gap was recently identified. However, it is critical that the county move forward with refining the project’s financing strategy so that the first shovel can be turned. A full environmental impact report has been completed and certified. The county was incredibly lucky to have been given the land for $1 per year by the state under a ground-lease agreement.

Construction permits are expected this spring.

Once built, Oak Hill will be publicly owned by the Marin County Public Financing Authority (a joint powers authority), which was established in 2023. The JPA has been meeting monthly to ensure the success of the project. Recently, shifts in capital markets and rising interest rates have created a projected budget gap. To address this situation, it hired third-party financial experts to analyze and refine the project’s financing strategy. One of the most favored paths forward has been the idea of a collaborative structure involving the county and local school districts.

Interest costs on the underlying debt could be reduced by having local school districts and the county “guarantee” occupancy of units they reserve for their faculty and staff. Subsequently, rental rates could be protected from averaging an increase of $400 per month.

The Education Housing Partners group, which is based in Mill Valley, has been working with districts for over 20 years. It developed this innovative financing approach after realizing that no educator housing was getting built in Marin. Management will be done by a third-party management entity, alleviating the need for the county or school districts to undertake day-to-day management.

Participating school districts would be required to assume responsibility for a minimum of nine apartments.

Participating districts (or a group of smaller districts) would agree to offset shortfalls in rental revenues from designated apartments at the end of each year. This guarantor program would lower interest rates on the bonds.

While this proposal puts additional responsibility on the districts, the “cost” is far outweighed by the benefits. School districts get the benefit of a project devoted to school personnel without having to undertake individual development projects that would be both time consuming and very costly. Schools can “sell” the idea of affordable housing to prospective teachers who are worried about finding nearby housing. The management of the Oak Hill units would be covered by a third party, alleviating this additional burden. The project could happen soon given that permits and construction could possibly begin in early 2025.

Funding gaps for similar developments are common rather than the exception. Affordable housing development projects typically tap many sources to fill that gap.

It is time for Marin to take strong leadership in supporting the teacher community. It is time to seriously work towards affordable housing within the county. Oak Hill provides this opportunity.

Amy Skewes-Cox, of Ross, is a board member for the Marin Environmental Housing Collaborative.