In November 2023, Multistudio’s San Francisco office hosted leaders from real estate, financial, policy, and education sectors to discuss K-12 workforce housing at the first of a series of think tanks. Session #1, Identifying a Path Forward for Workforce Housing, focused on eliminating barriers to affordable housing for K-12 teachers and staff. Session #2 built on those lessons, connecting K-12 districts with resources, partners, and potential pathways toward feasible workforce housing.

In June 2024, Session #2 gathered multiple K-12 districts at various stages of workforce housing development, alongside developers, advisors, policy advocates, contractors, and architects. The goal was to equip districts with a guide to forming effective partnerships throughout workforce housing projects. The following is a summary of our findings, with a full report on session #2 available below.

Key Partner #1: Peer School Districts

Peer school districts provide valuable insights and lessons on workforce housing projects, sharing experiences and resources that helped push their projects forward.

Jefferson Union High School District (JUHSD): Kalimah Salahuddin and Andy Lie discussed the district’s 705 Serramonte staff housing project, spurred by a survey revealing that 35% of staff intended to leave due to high housing costs. Another 25% showed strong interest in below-market, district-owned rental housing. The $75 million project, funded by $33 million from Measure J and $42 million through Certificates of Participation, was completed in 2022. Featuring 122 units at 50% of market rate, the development was fully occupied as of June 2024. The district credited this project for helping them start the school year with a fully staffed workforce.

Mountain View Whisman School District (MVWSD): Superintendent Dr. Ayindé Rudolph outlined MVWSD’s strategic approach to staff retention, which included a 60% salary increase since 2014, improved working conditions, and affordable housing. A 2017 survey found that 79% of staff spent over 35% of their income on housing, with 59% expressing willingness to live in district-provided housing. MVWSD partnered with a developer to designate 123 units for school staff within a larger 716-unit project, funded by Measure T in 2020. The project, still under construction, aims to offer affordable rents and ensure the district remains fully staffed each school year.

Los Angeles Unified School District (LAUSD): Al Grazioli, Director of Real Estate & Business Development at LAUSD, recommended districts consider alternatives to traditional new construction, such as exchanges or master leases, to speed up workforce housing delivery. While acquiring existing housing may limit customization, it can provide faster solutions. LAUSD partnered with affordable-housing developers to prioritize district employees in three housing projects. Grazioli emphasized the importance of maintaining control over tenancy to prioritize district staff for these units.

Key Partner #2: Developers and Advisors

Developers and advisors play a crucial role in assessing the feasibility of workforce housing projects, guiding districts through the complex process of financing, design, and execution.

In the case of Santa Clara Unified School District (SCUSD), Bruce Dorfman of Thompson Dorfman Partners, through their nonprofit division Education Housing Partners, assisted the district in addressing their urgent need for affordable staff housing. Faced with rapid housing cost increases and a surge in hiring due to K-5 classroom size reductions, SCUSD worked with Thompson Dorfman to develop 40 units of workforce housing.

Three key factors contributed to the project’s success:

1. Surplus Land: SCUSD leveraged surplus land under California’s Surplus Lands Act, which prioritizes affordable housing development for districts repurposing unused property.
2. Internal Champion: The project required a committed district leader to “own” the initiative and drive it to completion.
3. Financing Options: Thompson Dorfman guided SCUSD through a feasibility process, analyzing site potential, market demand, and financing strategies. A feasibility report helped the district navigate financing options, including Certificates of Participation (COPs), which funded the construction of 70 units. Initial rents were set at less than 60% of market rate, and the rental income covered both the COPs’ principal and interest. This financing model enabled long-term affordability while ensuring district staff could remain in the community.

Mr. Dorfman emphasized that GO (General Obligation) bonds, which offer lower capital costs and eliminate project-based debt service requirements, are a preferred financing method. The upcoming ACA-10 ballot measure, if passed, could lower the threshold for passing GO bonds, making it even easier for districts to finance workforce housing projects.

Key Partner #3: Program Managers (PMs) & Construction Managers (CMs)

PMs and CMs can execute workforce housing projects, ensuring the right partners and processes are in place.

Tony Mirenda of Kitchell noted that districts often lack familiarity with affordable housing development, making the expertise of PMs/CMs essential. These professionals guide the district through every stage of the project, ensuring the right partners are in place and the project stays on track, from planning to completion.

Key Partner #4: Housing Advocates

Housing advocates help drive policy changes to make workforce housing projects more accessible.

Corey Smith of the Housing Action Coalition (HAC) highlighted the importance of collaboration between districts, developers, and stakeholders to push for legislation that removes the barriers to building workforce housing.

Key legislative measures like the Teacher Housing Act and Assembly Bills 2295 and 3210 have been instrumental in streamlining processes for utilizing surplus district property for workforce housing. Staying up to date on housing policy is essential for districts to navigate regulatory hurdles effectively.

Key Partner #5: Stakeholders

Internal stakeholders—including district leadership, board members, teachers, and staff—are vital to building consensus and ensuring the success of workforce housing projects. Identifying a project champion within the district helps maintain momentum and advocacy throughout the project. External stakeholders, such as community members and local government officials, can assist by facilitating public financing and removing roadblocks.

Community support is crucial, as teacher housing directly addresses the broader housing affordability crisis in California, which has forced many educators out of the communities they serve. Clear communication of the project’s benefits, especially its positive impact on student outcomes by reducing teacher turnover, is essential.

Key Partner #6: Architects

Architects play a pivotal role in evaluating the development potential of school district sites, navigating zoning regulations, and maximizing the use of surplus land for workforce housing. They also provide critical support in the early planning stages, conducting feasibility studies and creating conceptual designs that can help secure community and board approval.

Steve Brezovec, Associate Principal at Multistudio, presented a yield study for a Bay Area district, examining two potential sites for workforce housing. Both sites faced significant zoning restrictions, with housing or educator housing as the only permissible use without rezoning. The study revealed that while height bonuses for affordable housing could be applied, the benefits of rezoning to align with surrounding zoning codes might offer greater flexibility for developers. This detailed analysis allowed the district to make informed decisions about how best to proceed with their housing project.

Christopher Roach of Studio VARA Architects worked with Santa Cruz Unified School District (SCUSD) on their workforce housing project. Initially, the district planned for 80 units, but a 50% design analysis revealed that increasing the number to 100 units would reduce per-unit costs by 5%. The architect modified the original design to accommodate additional units, including larger kitchens and more storage, within the existing footprint. This design evolution demonstrates the value of early architectural involvement in adapting projects to meet district needs while maintaining budget efficiencies.

Architects are not only crucial in the feasibility stage but also in community engagement. Renderings and design concepts help districts communicate the vision of the project to stakeholders, making it easier to gain community support and ensure that projects align with district goals and local regulations.

Summary

The focus of Session #2 was on identifying key partners—including peer school district, developers, advisors, policy advocates, community members, and architects—that K-12 districts will form relationships with during the lifecycle of a workforce housing project. Peer school districts, developers and advisors, and architects were identified as crucial partners during the early project stages when project feasibility is being assessed. Districts like Jefferson Union High School District and Mountain View Whisman School District, with successfully completed workforce housing projects, can offer insights into the project process as well as lessons learned along the way.

Developers, advisors, program managers and construction managers, internal and external community members, and architects will remain involved in the workforce housing project from project start to completion and can act as valuable resources for K-12 districts interested in building workforce housing.

Because there is no one-size-fits-all solution to K-12 workforce housing in California, it is important that districts with successfully completed projects work together with fellow districts and policy advocates to identify policy changes that help to remove the barriers to building teacher and staff housing in California.

Thank You to Our Contributors

Special thanks to Ross Robb of RLR Ventures, Tony Mirenda of Kitchell, Corey Smith of Housing Action Coalition, Andy Lie and Kalimah Salahuddin of Jefferson Union High School District, Ayindé Rudolph and Nancy Villalba of Mountain View Whisman School District, Al Grazioli of Los Angeles Unified School District, Bruce Dorfman of Thompson Dorfman Partners, Steve Brezovec of Multistudio, Christopher Roach of Studio VARA Architects, as well as numerous Bay Area district representatives and developers for their contributions.

As ongoing discussions, these summits are intended to highlight opportunities for K-12 districts to capitalize on the potential to develop workforce housing.