South City schools explore teacher housing

That 65 percent of renting workers shared moderate or strong interest in the proposal indicates intrigue grew from a 2017 poll, when 58 percent of about 174 district staffers claimed to be similarly enthused by the opportunity.

The survey briefly addressed during a recent school board meeting continues years of examination of the proposal to build affordable housing for South San Francisco school district workers.

District officials have studied the matter regularly since at least 2016, and earlier this year hosted a discussion with advisors who offered their guidance on financing such a project. That examination came on the heels of school officials discussing with South San Francisco city officials the possibility to collaborate on a workforce housing development.

Talks around the issue have long centered on building at the former Foxridge Elementary School site, which was closed in 1992. Officials have suggested the shuttered campus could hold as many as 75 townhomes, which could accommodate school officials as well as city workers — should the two agencies take on a joint initiative.

Officials’ enthusiasm for the opportunity is fueled partially by a law from Assemblyman Kevin Mullin, D-South San Francisco, that made it easier for school systems seeking to build teacher housing on underutilized land. Advocates have also noted additional legislation making it easier to finance the projects with tax credits.

As part of the city’s contribution to the initiative, officials have identified $1 million in shared community benefit money paid by a housing developer dedicated to improving the city’s quality of life which could help finance the project.

Financial experts suggested developing a project similar to the one discussed for the 4-acre Foxridge campus could cost as much as $41 million to build, a sum far beyond the limited capacity of the district’s operating budget.

In recognition of the school system’s inability to build the project, analysts suggested officials explore different types of bonds which may be used for financing. The initial construction costs could be offset partially by revenue generated through eventual rental payments.

A central focus of any discussion around housing should be determining staff’s interest in such a proposal, according to the analysts, and the most recent study suggests the region’s affordability crisis is hurting the quality of life for many.

To that end, 81 percent of those surveyed said they know someone who was forced to leave the area due to the high cost of living, and 37 percent of district staff said affordability struggles have caused them to move. More information on the study is due next month.

In other business at the meeting, officials discussed the district budget which showed an operating deficit of nearly $3 million projected into the coming school year.

Officials said the financial struggles for the district, which is financed primarily through local property tax revenue, are largely formed by combination of dwindling student enrollment, increasing staff salaries and heightened retirement and pension payment obligations.

Trustee Daina Lujan acknowledged the source of the financial hardship is not unique to the district, as many other school systems across the state are grappling with similar challenges.

“I know South San Francisco Unified is not alone in these concerns,” said Lujan, during an interim discussion of the budget which required no action by trustees.

And finally at the meeting, officials approved a pay hike for teachers. Under unanimous approval by the board, teachers will receive a 3.25 percent raise and a 2.25 percent raise the following year.

austin@smdailyjournal.com

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