What's Happening?
Marin County is advancing a new financing strategy for the Oak Hill affordable housing project, aimed at providing 135 apartments for county employees and educators. The project, located in Larkspur, is designed
to be affordable for households earning 50% to 80% of the area median income. The Marin County Public Financing Authority, led by Matthew Hymel, has proposed that the county guarantee the project's debt service reserve fund. This move is intended to leverage the county's AAA bond rating to secure lower interest rates on bonds, making the project more financially viable. Previously, local school districts and the College of Marin were considered as guarantors, but concerns about financial risk led to a shift in strategy. The new plan involves subagreements with these entities, allowing them to opt out of responsibility for up to 36 apartments. The project has also received a $7.5 million state grant and a $7.4 million loan from the Marin Community Foundation.
Why It's Important?
The Oak Hill project is crucial for addressing the housing needs of Marin County's workforce, particularly educators and county employees who face high living costs. By securing lower interest rates through the county's bond rating, the project aims to reduce financial risks and ensure its completion. However, the plan has faced criticism from groups like the Coalition of Sensible Taxpayers, who argue that involving schools as guarantors could strain their already tight budgets. The project's success could set a precedent for similar initiatives in other regions, highlighting the importance of innovative financing solutions in tackling affordable housing shortages.
What's Next?
The Marin County Board of Supervisors is expected to review and potentially approve the new financing structure in the coming month. If approved, the county will proceed with the bond issuance under the new terms. The involvement of local schools and the College of Marin will be formalized through subagreements, with the option to reduce their commitments if necessary. The project's progress will be closely monitored by stakeholders, including local government officials, educators, and community groups, as they assess the impact of this financing model on future housing projects.
