Marin County to consider Oak Hill guarantor program

This article, written by Richard Halstead, was originally published in the Marin Independent Journal.

Marin County supervisors voted unanimously on Tuesday to take an initial step toward helping to guarantee rental income for a housing project designed to serve educators and county employees.

The project, the Village at Oak Hill, envisions construction of 135 apartments on vacant land donated by the state in eastern Larkspur near San Quentin. The plan is to reserve 101 of the apartments for the employees of local schools and 34 for county employees.

The project, which is being overseen by the Marin County Public Financing Authority, a joint partnership between Marin County and the Marin County Office of Education, has a $16.4 million funding gap. Rising interest rates since the project launched are to blame, said Matthew Hymel, the authority’s director and a former county executive.

As a means of reducing the deficit, the authority is asking Marin County and local school districts to guarantee future rental income from the apartments for 40 years as a means of convincing bondholders to accept lower interest rates on the loan that will finance the project.

Tamalpais Union High School District declined to participate in the guarantee program in March. The Novato Unified School District and the College of Marin have both expressed interest. The project was initially designed to serve the county’s 17 school districts. College of Marin was invited in after the funding gap emerged.

Despite the fact that the county could still reverse course, opponents of the plan warned strongly against embarking on a slippery slope.

“If you agree today, you are essentially getting pregnant and then you become reluctant to abort further on,” said Mimi Willard, president of the Coalition of Sensible Taxpayers. “That is why I suggest you not do so.”

Click here to continue reading at the Marin IJ »

Schools Must Refuse to Guarantee Housing Bonds

Marin Schools Shouldn’t Risk their Future Finances on Oak Hill Housing Project

If you care about the future of Marin’s schools and the children they educate, speak up NOW to oppose the efforts of Marin County and its Office of Education to make school districts financial guarantors of the 135-unit Oak Hill workforce housing project at San Quentin.

Parents should be alarmed. As explained in the op/ed below, shortfalls in Oak Hill rental income would obligate participating districts to make payments to bond holders with money that was intended for teaching and maintaining school facilities. If the county believes the Oak Hill WFH project is essential and financially viable, they should come forward with an alternative funding approach.

Discussion and a vote to approve a resolution to further advance this ill-conceived proposal to put schools at financial risk for the next 40 years will commence at around 10:30 a.m at the Board of Supervisors meeting this Tuesday, April 15. We urge community members to speak in person or online at the meeting or email BOS@marincounty.org (less effective). Demand that the County not ask nor permit school districts to be financial guarantors of risky housing.

A similar guarantor resolution will also be on the College of Marin’s agenda this Tuesday April 15 at its 2PM board meeting.

Of greatest concern is the San Rafael City Schools’ consideration of Oak Hill guarantor program, as SRCS may end up committing the largest guarantee of any Marin district or agency. Be sure to speak up at or before Oak Hill is considered at SRCS’s April 21 6PM board meeting.

Learn more in the just-published op/ed in the Marin IJ by clicking here.

Oak Hill Workforce Housing Guarantor Proposal Imperils School Districts’ Future

CST recently reached out to trustees and leadership at Marin County’s K-12 and community college districts to share the urgent letter below alerting them about the latest Oak Hill Workforce Housing proposal, which will make participating school districts responsible for rental property income shortfalls. This imperils schools’ financial future.

We urge Districts to say NO to ANY proposal that places ANY financial risk related to housing projects on the shoulders of Marin’s already burdened educational institutions. It’s all the more important now, when multiple school districts are laying off teachers and cutting programs amid large budget deficits. Novato and Mill Valley are two of the latest; Kentfield is exploring its options; and Miller Creek downsized last year.

Please contact your school board and superintendent with the message: Stick to your educational mandate. Don’t gamble on overpriced housing development with our District’s dollars.

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