As reported by SF Gate and other media outlets, Governor Brown has signed Senate Bill 1413, allowing school districts in high-priced cities to build teacher-only affordable housing on district property.
According to Redfin, a national real estate brokerage, of California’s 31 most-populous counties, only 17 percent of homes for sale in those counties were affordable on the state’s average teacher salary of $73,536. “Affordable” means the monthly mortgage payment would eat up less than 30 percent of a person’s gross monthly salary. California’s economic boom has not only affected key metro areas but has created a ripple effect across entire regions, resulting in a serious recruitment and retention challenge for schools across the state – and a quality of life issue for many teachers and school employees.
This bill will now authorize a school district to establish and implement programs, especially land leases, that address the housing needs of teachers and school district employees who face challenges in securing affordable housing. Equally important, the law permits school districts and developers in receipt of local or state funds or tax credits designated for affordable rental housing to restrict occupancy to teachers and school district employees on land owned by school districts, so long as that housing does not violate any other applicable laws.
SB 1413 has significant implications for cities and school districts seeking creative options to address the housing affordability crisis. For the past 12 years, DCG has worked with K-14 schools across the state to evaluate the most strategic use of their real property, and is offering a complimentary briefing to help leaders understand the implications and opportunities for their district.
