The Mesa County Valley School District 51 Board of Education listened to a presentation at its meeting Tuesday evening about the housing challenges facing district staff — and what the district can do about them.
J.J. Folsom, the director of Denver-based Community Builders, detailed the Colorado Division of Housing (DOH) Affordable Housing Toolkit for Local Officials, which was developed through a state partnership with Community Builders. The findings included District 51 staff responses along with potential solutions and partnerships.
Last May, District 51 applied for technical assistance from the DOH. In November, Community Builders developed a survey for district employees. The survey launched in January.
The internal team collaborating throughout this process included Folsom and Brooke Murphy from Community Builders, Housing Resources of Western Colorado (HRWC) Executive Director Emilee Powell, D51 Superintendent Brian Hill, D51 Chief Operating Officer Clint Garcia, D51 Human Resource Data Analyst Rachel Talley and D51 Chief Human Resources Officer Nikki Jost.
HOW MANY D51 STAFF ARE HOMEOWNERS?
Per the survey, across all respondents, 90% of staff desire to own their own housing, and 74% do. Sixteen percent of staff rent their housing. Ownership is the primary housing status for staff aged 35-54 (82% ownership rate) and staff aged 55 and up (87% ownership rate).
Among the district’s younger staff in the 25-34 age range, however, only 52% own while 48% rent. There is a strong desire among those in the age range to own a house (95%), but they face barriers such as an inability to afford rent or mortgage, an inability to afford a down payment and a lack of available affordable housing.
In the survey, 30% of district staff said they’ve had trouble making housing payments while working for District 51. Factors cited included salaries and wages that haven’t kept up with the rising costs of living, the need for supplementary income, difficulty paying for needed repairs and maintenance, concerns about the prospect of retirement because of financial instability and how all of these factors combine to cause employees to look elsewhere geographically.
WHAT CAN DISTRICT 51 DO?
Folsom detailed partnerships and programs the district could embrace to combat the financial insecurity facing so many staff. The district could position itself for public and private partnerships (PPP) through land provisions, direct subsidies and cost reductions.
He identified three categories of partnerships that the school district should consider: homeowner and renter assistance, attaining and preserving existing affordable units and master lease programs.
One such partnership Folsom used as an example is how HRWC connects D51 employees to renter, homebuyer and homeowner services.
A down payment assistance program provides funds to support a buyer that may not have the full amount required to purchase a home. The program generally allows for funds to be used for the down payment and closing costs.
Examples Folsom cited included the Eagle County Housing Loan Fund and the Longmont Down Payment Assistance Program. A potential constraint for the district is that this requires staff time or a partnership with municipalities, housing authorities or nonprofit organizations.
The district could also consider rental deposit assistance, which provides employees with short-term financing for a security deposit and/or a month’s rent. This can be a forgivable, low-interest or zero-interest loan. This approach would require direct funding.
Another option is a master lease program, which could see District 51 and an apartment complex negotiate a set number of units to rent to employees. The Eagle County School District has housing options through master leases at apartment complexes across the county.
This approach would lock District 51 into leases, but Folsom said that, because of high demand for housing, this is not a major constraint for the district.
Other ideas included a preferred lender partnership, which would see the district work with local banks to establish favorable loans and rates specific to district employees, and a moving expenses and relocation assistance program, which would be a one-time payment to help new employees move to the area and find housing.
LEVERAGING DISTRICT 51 LAND
A focal point of Folsom’s presentation was that the school district could sell or donate land or unused buildings to local government entities or nonprofit organizations to build affordable housing for district employees.
Districts may also sell desirable land at market rate and use the proceeds to underwrite the affordability of housing for district employees.
Folsom called this “perhaps one of the best opportunities for (District 51), as they own viable properties that would be sold and developed by a development partner.”
An example Folsom referenced was Habitat for Humanity Vail Valley, which completed a dozen homes for educators and other public service workers on land donated by the Eagle County School District. The organization wants to build a separate neighborhood of 16 modular homes on lands that were once the school district’s, with most homes designated for district staff, particularly teachers who have taught in the district for three to five years.
Other examples were the Custer County School District, which converted a vacant former preschool to four affordable apartments, and the Salida School District, where Habitat for Humanity developed 10 new housing units and sold them to district staffers at below-market rates. Both projects benefited from the volunteer work of building trades students.
WHAT ELSE CAN D51 DO?
Folsom suggested that the district further collaborate with Colorado Mesa University and CMU Tech to create housing solutions. Eagle County was once again used as a reference point, as Colorado Mountain College is currently in the planning process in Eagle to develop 72 affordable housing units for school district staff and students.
Other entities the district should collaborate with on housing, Folsom said, include the City of Grand Junction, Mesa County, Intermountain Health and St. Mary’s Regional Hospital, Community Hospital, Fruita Family Health West, Montrose Health, the Grand Junction Housing Authority, and Habitat for Humanity of Mesa County.
